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Finance

Selling price calculator

Set your price from the cost and the margin or markup you want to achieve.

Published by SolucionesAhora.com How we verify

Calculator inputs

The margin is based on

Results

Enter your values and press “Calculate” to see the result.

Free, no sign-up! What if you could do this without a calculator? A five-minute game with challenges, lives and points. It clicks even when you cannot be bothered.

In short

What it calculates
Set your price from the cost and the margin or markup you want to achieve.
Formula used
Margin on price: SP = cost / (1 − margin/100)
Example
Cost £40 with a 35% margin on price:

Selling price calculator

The most common pricing mistake is adding the margin to the cost: if you want a 35% margin on price, multiplying cost by 1.35 falls short.

Pick the right basis and the calculator applies the correct formula.

How it works

If the margin is on the selling price, the cost is divided by one minus the margin. If it is on cost (markup), the cost is multiplied by one plus the percentage.

Formula

Margin on price: SP = cost / (1 − margin/100)

Markup on cost: SP = cost × (1 + markup/100)

Worked example

Cost £40 with a 35% margin on price:

SP = 40 / 0.65 = £61.54
Profit: £21.54

With a 35% markup the price would be only £54.

Explanation

Why a hundred per cent margin does not exist

Margin is calculated on the selling price, so a hundred per cent would mean the cost is zero. What people usually mean by 'a hundred per cent margin' is doubling the cost, which is a hundred per cent markup and a fifty per cent margin. Confusing the two concepts is the usual source of badly calculated prices.

Cost is more than what you pay the supplier

You must include shipping, duties, packaging, the proportional share of returns and the fees charged by the payment gateway or marketplace. Selling on a platform taking fifteen per cent completely changes the price needed to reach your target margin.

Cost-based pricing has a limit

Cost plus margin is simple and safe, but it ignores what the customer is willing to pay. One product can sustain a far higher price if it solves something valuable, while another will not even reach cost plus a minimum margin because the market rejects it.

Tax at the end

Indirect tax is calculated on the selling price once set. Including it inside the margin calculation distorts the result, because it is not yours: you merely collect it.

Frequently asked questions

Why can I not use a 100% margin?

Because the price would go to infinity: a 100% margin on price would mean the cost is zero.

Should I add tax afterwards?

Yes. This price excludes tax; use the VAT calculator to get the final consumer price.

Can I have a 100% margin?

No. A hundred per cent margin would mean zero cost. Doubling the cost is a hundred per cent markup and equals a fifty per cent margin.

Should marketplace fees go into the cost?

Yes, along with shipping, packaging and returns. Leaving them out puts the real margin well below the calculated one.

Need to calculate something else?

These tools are often used alongside this calculator.

Margin

A clear distinction between margin on price and markup on cost.

Break-even

Units and revenue needed to cover every cost.

Add VAT

Turn a tax-exclusive price into the final price your customer sees.

Discount

Final price after a discount and exactly how much you save.

Compound interest

How much your money grows with regular contributions, and what it is really worth once inflation and fees…

Loan

Monthly payment, total interest, APR with fees and insurance, and how principal and interest split each year.