Target Margin Pricing Calculator

Calculate Target Margin Pricing step by step: Price = cost ÷ (1 − target margin ÷ 100).

In short

Formula: Price = cost ÷ (1 − target margin ÷ 100).

Complete the required fields to see the result.

What this calculator does

Calculate Target Margin Pricing step by step: Price = cost ÷ (1 − target margin ÷ 100). Worked example, questions and limitations included.

Use it to turn Currency (symbol only, never converted), Cost per unit, Target margin on price into a checked result you can compare, copy, or rerun with different assumptions.

The page shows the formula, a numeric worked example, and the assumptions that affect this business pricing calculation.

Inputs and what they mean

Currency (symbol only, never converted): — choice value.
Cost per unit: — number value.
Target margin on price: — number value.

How to use it

Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
Check the breakdown to see every intermediate step.
Read the limitations before relying on the result.

Formula

Rearranged from margin = (price − cost) ÷ price.

Markup is profit as a share of cost: (price − cost) ÷ cost. Margin is profit as a share of price: (price − cost) ÷ price. The same sale always has a higher markup than margin — 50% markup is only 33.33% margin.

A 100% margin is impossible — it would need an infinite price.

Price = cost ÷ (1 − target margin ÷ 100).

Inputs used: Currency (symbol only, never converted), Cost per unit, Target margin on price.

Worked example

40% margin on a $60 cost

60 ÷ 0.60 = $100.
Markup = 40 ÷ 60 = 66.67%.

Reading the result

The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.

Limitations and assumptions

Per unit, before tax.
No demand check.
Results are educational estimates built only from the figures you enter. They are not personalised investment, tax, legal or accounting advice. Rates, growth and discount assumptions are always yours to choose.
The result depends on the values you enter for this target margin pricing calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

Common questions

Markup or margin?

Why can't margin be 100%?

Margin is profit ÷ price; profit can never equal the whole price unless cost is zero. Check the formula, example, and limitations on this page before using the result for a real business pricing decision.

How do I check the result?

Enter the price and cost in the profit margin calculator. Check the formula, example, and limitations on this page before using the result for a real business pricing decision.

How do I use the Target Margin Pricing Calculator?

Enter the required values for Currency (symbol only, never converted), Cost per unit, Target margin on price. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

What formula does the Target Margin Pricing Calculator use?

Price = cost ÷ (1 − target margin ÷ 100). The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.

Can the Target Margin Pricing Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.