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Pricing Calculator

Calculate the selling price given cost and desired margin or markup.

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Formula

Selling Price = Cost / (1 - Desired Margin / 100)

Divide the cost by (1 - desired margin percentage) to get the selling price that achieves your target margin.

Worked Example

Cost: $60, Desired Margin: 40% Step 1: Selling Price = 60 / (1 - 0.40) Step 2: = 60 / 0.60 = $100 Step 3: Profit = 100 - 60 = $40 Result: Sell at $100 for a 40% margin

How to Price a Product

Pricing is one of the most critical business decisions. The right price covers your costs, generates profit, and reflects the value customers perceive. Cost-based pricing starts with your total cost and adds a desired margin. Value-based pricing sets the price based on what customers are willing to pay. Competitive pricing matches or undercuts competitors.
  • Cost-plus pricing: Total Cost + (Total Cost x Desired Margin %) = Selling Price
  • Always include both direct costs (materials, labor) and indirect costs (rent, utilities, marketing)
  • Test pricing with A/B experiments before committing to a permanent price change
  • Psychological pricing (e.g., $9.99 vs $10.00) can significantly impact purchase decisions

There is no single correct price for a product. The best price balances profitability, competitiveness, and customer value perception.

You can also calculate changes using our Profit Margin Calculator, Markup Calculator or Break-Even Calculator.

Frequently Asked Questions

How do I price my product?

Start with your cost, add your desired margin, and validate against market prices and competitor analysis.

Should I price based on margin or markup?

Margin is more commonly used in finance and is easier to compare across products.

What is cost-plus pricing?

A strategy where you add a fixed markup percentage to the cost to determine the selling price.

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