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Price from cost and target margin

Set the selling price that hits a target profit margin for a given unit cost.

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The Price from cost and target margin turns Unit cost ({cur}), Target margin (%) into Selling price, Profit per unit, instantly and for free. For instance, with Unit cost ({cur}) = 20 and Target margin (%) = 40% it returns Selling price = $33.33 and Profit per unit = $13.33.

How to use it

  1. Enter your values: Unit cost ({cur}), Target margin (%).
  2. Read the result instantly: Selling price, Profit per unit.

Frequently asked questions

What does the Price from cost and target margin actually compute?

It takes Unit cost ({cur}) and Target margin (%) and derives Selling price and Profit per unit from them. The calculation is live as you type, so the result updates on every change.

What information do I need to provide?

2 values: Unit cost ({cur}) and Target margin (%) (%). Nothing else is required — no account, no file upload.

Can you show a worked example?

With Unit cost ({cur}) = 20 and Target margin (%) = 40%, the calculator returns Selling price = $33.33 and Profit per unit = $13.33. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

What happens if I enter larger values?

It moves a lot. Using Unit cost ({cur}) = 40 and Target margin (%) = 44% instead, Selling price goes from $33.33 to $71.43 — which is why it is worth testing a few scenarios rather than trusting a single figure.

Which units should I enter the values in?

Enter Target margin (%) %.

What does it give for smaller values?

Scaled down to Unit cost ({cur}) = 10 and Target margin (%) = 36%, Selling price comes out at $15.63. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Setting a price that survives contact with reality: covering costs, hitting a target margin, and checking what the marketplace and payment fees leave behind.

What is the most common mistake?

Confusing margin with markup. A 50% markup is a 33% margin, and pricing as if they were the same undercharges by a third on every unit sold.

Is there a tool for the next step?

Wholesale price calculator is the closest one after this: Set a wholesale price and a suggested retail price from your unit cost. Choose a markup multiplier or a target margin for wholesale, then a keystone multiplier or a retailer margin for the shelf price. It returns both prices with their margins, and the total for an order.

What else is worth having open alongside it?

Contribution margin calculator and Markup to margin converter — they come up in the same task often enough to be worth a second tab.

Further reading

All guides →
ComparisonGross Margin vs Markup: The Confusion That Costs Real MoneyMargin is measured on the selling price, markup on the cost. They describe the same profit from opposite ends, they are never equal, and reading one as the other quietly removes a large slice of your gross profit.ComparisonMarkup vs Margin: What's the Difference?Markup and margin both describe profit on a sale, but from different bases. Confusing them costs money — here's how each works and how to convert.How-toHow to Calculate Your Break-Even PointYour break-even point is where revenue equals costs. Here's how to find it in units and revenue, and how to use it to make pricing decisions.ExplainerEBITDA: What It Deliberately Leaves OutEBITDA adds back the two costs that differ most between companies, which is exactly what makes it comparable — and exactly why it flatters anyone who owns a lot of equipment. Here is the same profit walked all the way down, and the maintenance-capex floor the measure never shows.ComparisonEBITDA vs EBIT vs Net Income: One P&L, Three AnswersWalked down one $10M P&L: EBITDA of $1.8M, EBIT of $1.1M, net income of $525K. The gap is 70.8 percent of EBITDA — and it is the cost of the assets and the debt the business actually runs on.ExplainerContribution Margin, and the Break-Even That Actually MattersGross margin nets off cost of goods sold; contribution margin nets off only the costs that vary with the unit. The gap decides your break-even, your operating leverage, and how much extra volume a price cut really needs.