Price Calculator
Formulas used
R = C / (1 − G) P = R − C Markup% = (P / C) × 100
What this Price Calculator does
Our Price Calculator turns your cost and either a margin % or markup % into a clear selling price, along with profit, margin, and markup readouts. It’s built for fast quoting—whether you’re pricing one item or sanity-checking a whole catalog.
When to use margin vs. markup
These two percentages answer different questions:
- Margin % = profit ÷ revenue.Use margin when you target a specific profit share of the final price (e.g., “we run a 45% margin”).
- Markup % = profit ÷ cost.Use markup when your pricing policy adds a fixed multiple to cost (e.g., “cost × 1.6”).
They’re related but not interchangeable. A 50% margin is a 100% markup. The calculator shows both values so you always know where you stand.
Formulas the calculator uses
- Price from cost & margin:Price = Cost / (1 − Margin)Profit = Price − CostMarkup% = (Profit / Cost) × 100
- Price from cost & markup:Price = Cost × (1 + Markup)Profit = Cost × MarkupMargin% = (Profit / Price) × 100
Tip: Enter margin or markup as a percentage (e.g., 40 for 40%).
Quick example
You buy an item for $20 and want a margin of 40%.
- Price = 20 ÷ (1 − 0.40) = $33.33
- Profit = 33.33 − 20 = $13.33
- Markup% = 13.33 ÷ 20 = 66.67%
Want to work from markup instead? If you use a 60% markup, the price becomes:
- Price = 20 × (1 + 0.60) = $32.00
- Profit = $12.00
- Margin% = 12 ÷ 32 = 37.5%
Same cost, different targets—now you can compare at a glance.
How to use the Price Calculator
- Enter your cost.
- Choose Solve using → Cost + Margin % or Cost + Markup %.
- Enter the percentage and hit Calculate.
- Copy or select the answer block to paste into an email or quote.
Practical tips for better pricing
- Guardrails: A margin above 60–70% may be hard to defend unless you add value (faster lead-times, service bundles, or unique options).
- Whole-number pricing: After calculating, round to friendly prices (e.g., $33.33 → $33.95) while watching that your margin doesn’t dip below policy.
- Fees and freight: If shipping or processing isn’t baked into cost, add them before calculating to avoid margin erosion.
- Volume tiers: Costs often fall with quantity. Re-run the calculator per break to publish clean tiered prices.
- Compare both views: Many teams think in markup while finance reports in margin. Showing both keeps everyone aligned.
Why this tool helps
Spreadsheets grow messy, and mental math is risky. This Price Calculator gives you one accurate price from the numbers you already know, plus the supporting metrics you need to defend it. Use it to quote faster, stay consistent with policy, and protect your profit on every sale.