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Product Pricing Calculator

Calculate selling price from cost and desired margin, or find the margin from cost and price.

Pricing Analysis

Product pricing can be calculated in two directions:

1. Find selling price from cost and desired margin:

Selling Price = Cost / (1 - Margin%/100)

2. Find margin from cost and selling price:

Margin % = ((Price - Cost) / Price) × 100

Markup % = ((Price - Cost) / Cost) × 100

Margin vs. Markup (they are different!):

  • A product costing $60 sold at $100 has a 40% margin but a 66.7% markup
  • Margin is based on selling price; markup is based on cost

Common target margins by industry:

  • Retail: 40–60%
  • Software/SaaS: 70–90%
  • Manufacturing: 25–35%
  • Food service: 55–65%
  • Consulting: 50–70%

Enter any two of the three fields (cost, price, margin) to calculate the third.


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