This calculator helps you determine the exact selling price needed to achieve a specific profit margin. Instead of guessing or working backwards manually, you can enter your product cost and target margin percentage to instantly calculate the correct price. This is essential for ecommerce businesses, retail pricing, wholesale agreements, and any situation where profitability must be controlled precisely.
Many businesses make the mistake of using markup instead of margin when pricing products. This often leads to underpricing and reduced profit. Margin is based on the final selling price, which makes it a far more accurate measure of profitability. By using this calculator, you ensure that your pricing strategy aligns with real business performance rather than assumptions.
This tool is especially useful when factoring in additional costs such as marketplace fees, VAT, shipping, packaging, and advertising. By setting a target margin first, you can work backwards to find a price that protects your profit and keeps your business sustainable.
Formula: Price = Cost ÷ (1 − Margin)
The result shows the selling price required to achieve your target margin, along with the profit generated at that price. This allows you to instantly assess whether your pricing strategy is realistic or needs adjustment.
The calculator divides your cost by the remaining percentage after margin is removed. For example, a 40% margin means only 60% of the selling price covers cost, so the price must be higher to compensate.
This approach ensures your final selling price reflects your desired profitability rather than simply adding a fixed markup.
Example 1: Cost £20, margin 40% → price = £33.33 → profit = £13.33
Example 2: Cost £75, margin 25% → price = £100 → profit = £25
It depends on your industry, but higher margins provide more flexibility for costs and growth.
Markup often underestimates pricing needs. Margin reflects real profitability more accurately.
Yes, it is ideal for product pricing, Etsy, Amazon, and Shopify stores.