Target Margin Price Calculator

About this calculator

Gross margin is expressed as a percentage of the selling price, not of cost — which is why solving for a target-margin price isn't as simple as adding a markup to cost. The correct formula is price = cost ÷ (1 − target margin%); for example, a $60 unit cost at a target 40% margin gives $60 ÷ 0.60 = $100, not $60 × 1.40 = $84, which would only yield a 33.3% margin.

This calculator takes a unit cost and a target gross margin percentage and returns the selling price needed to hit that margin exactly. Retailers, e-commerce sellers, and pricing and merchandising analysts use it when setting list prices from a cost sheet, so the margin they book on paper matches the margin they actually realize on each sale.