Selling price calculator
Set your price from the cost and the margin or markup you want to achieve.
Calculator inputs
Results
Enter your values and press “Calculate” to see the result.
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.