Margin & Selling Price Calculator
Enter your amounts to see the result.
Margin & Selling Price Calculator
Setting a price without knowing the margin is the fastest way to sell at a loss. From your cost, this calculator gives the selling price for a target margin, or the real margin of an existing price. It separates profit margin (profit divided by price) from markup (profit divided by cost), two notions that are often confused. Everything runs in your browser.
How to use it
- Choose: find a selling price, or calculate the margin of a price.
- Enter the cost price excluding VAT and the target margin (or the price).
- Say whether the margin is based on the selling price or on the cost.
- Read the price, profit, margin, markup and multiplier.
Margin or markup: don’t mix them up
Profit margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost. For a cost of 100 sold at 150, profit is 50: the margin is 33.3% and the markup 50%. A 50% margin on price requires a price of 200 (multiplier 2), whereas a 50% markup gives 150 (multiplier 1.5). Always say which base you mean.
Worked examples
- Cost 100 MAD, target 40% margin on price: price = 100 ÷ (1 − 0.40) = 166.67 MAD; profit = 66.67 MAD.
- Cost 100 MAD, 40% markup: price = 140 MAD; profit = 40 MAD; margin = 28.6%.
- Cost 80 MAD, price 120 MAD: profit = 40 MAD; margin = 33.3%; markup = 50%; multiplier = 1.5.
This calculator works excluding VAT. Subtract your other costs (shipping, packaging, commissions, overheads) to get true profitability, then add VAT with our VAT calculator.
Frequently asked questions
What is the difference between margin and markup?
Margin is calculated on the selling price; markup on the cost. For the same profit, markup is always higher than margin.
How do I price for a 30% margin?
Divide the cost by (1 − 0.30), i.e. by 0.70. For a cost of 70, the price is 100.
What is the price multiplier?
It is the selling price divided by the cost. A multiplier of 1.5 means you sell at 1.5 times your cost.
Does the calculated price include VAT?
No, it is excluding VAT. Add VAT afterwards with the VAT calculator.