Instant
The price updates as you type, no buttons needed.
Free tool
Selling price calculator
Do you add a percentage to the cost and end up making less than you expected? Calculate the price that actually gives you the margin you're after.
Fast. Simple. Accurate. And best of all, free.
- No sign-up
- Your data never leaves your browser
Instructions
Enter what the product costs you, choose how you want to calculate your profit and type the percentage.
Calculator results
Profit per unit--
Margin on selling price--
Increase over cost (markup)--
Selling price--
With the right formula
Margin on price, not on cost.
Private
The numbers stay in your browser.
Why is it important to calculate your selling price correctly?
Your selling price has the biggest impact on your profitability: a small mistake repeats on every unit you sell.
Review your prices whenever your supplier changes the cost. If the cost goes up and the price doesn't, your margin shrinks without you noticing.
With a well-calculated price, you know how much each sale earns you.
Margin isn't markup
If a product costs you $10.000 and you add 30 %, you sell it for $13.000, but your profit is only 23 % of the price.
The right formula
Divide the cost by 1 minus the margin: $10.000 ÷ 0,70 = $14.286. That way you really earn 30 % of the price.
Selling price=Product cost1 − Desired margin
Tiendana Enseña tip
Check the margin per product, not just the total
A business can sell a lot and earn little if its best sellers are its lowest-margin products. Sort your products by profit per unit and by turnover: the ones that sell a lot and earn little are the first to review.
When you negotiate with a supplier, calculate the selling price before accepting the new cost. That way you know right away whether the product still works for you or whether you need to adjust the shelf price.
Did you know?
A 50 % markup over cost equals a 33 % margin on price. And a 50 % margin requires a 100 % markup on cost.
Step by step
How to calculate your selling price
Enter the cost
Type what each unit of the product costs you, without dots or symbols.
Set your margin
Enter the percentage of the price you want to keep as profit.
See the price
The calculator shows you the selling price, the profit, the margin on price and the markup on cost.
Adjust and round
Try other margins and round the price to an amount that's easy to charge.
We answer your questions
Frequently asked questions
How do you calculate a product's selling price?
Divide the cost by 1 minus the margin you want to earn. For example, with a cost of $10.000 and a 30 % margin: $10.000 / 0,70 = $14.286.
What's the difference between margin and markup?
Margin is the percentage of the selling price you keep as profit. Markup is the percentage you add to the cost. A 30 % markup equals a margin of only 23 %.
Why isn't adding a percentage to the cost enough?
Because the percentage you add is calculated on the cost, but your profit is measured on the price. Adding 30 % to the cost leaves you with a margin below 30 %.
What profit margin should I use?
It depends on your type of business, how fast the product sells and your fixed costs. What matters is that the margin covers your business expenses and leaves you a profit. Compare with prices in your market before deciding.
Does the selling price include VAT (IVA)?
No. This calculator works with cost and price before taxes. If your product carries VAT, add it to the selling price the calculator gives you.
Can I use a margin of 100 % or more?
No. With the margin-on-price formula, a 100 % margin isn't possible: it would mean the cost is zero. If you want to double the cost, that's a 50 % margin.
How often should I review my prices?
Every time your suppliers' costs change and, at a minimum, once a year. A cost that goes up without a price adjustment keeps shrinking your margin.
Is my data saved?
No. The calculation happens in your browser and the numbers you enter aren't sent to any server.
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