Selling Price Calculator
Easily determine the right Selling Price ($) for your products with our Price Calculator. Just enter the Cost of Item ($) and your Desired Gross Margin (%), then click “Calculate Price” to find out the selling price you need to achieve your target profit margin.
How It Works
When setting prices, businesses need to ensure they cover costs while making a profit. The gross margin (%) represents the percentage of the selling price that is profit. Our calculator helps you determine the correct selling price based on your cost and desired profit margin.
To calculate the selling price (R) based on the cost (C) and the desired gross margin (G, in decimal form):
The gross margin (G) is the profit divided by the selling price:
So, the gross profit (P) is:
Another way to look at profit is markup percentage (M), which is how much profit is added to the cost:
To express markup as a percentage:
Example Calculation
If an item costs $80.00 and you want a 60% gross margin, the selling price (R), gross profit (P), and markup percentage (M) would be:
- Selling Price (R) = $200.00
- Gross Profit (P) = $120.00
- Markup Percentage (M) = 150%
Use this tool to price your products strategically and maximize your profitability!
