SellersCalc

Pricing math

Selling Price Calculator

Start from the margin you need to survive — then let the price be whatever makes that true.

Required selling price = cost ÷ (1 − target margin%). Most sellers price by gut and discover their margin later; this flips it. If a product costs $18 and you need a 40% margin, the price must be $30 — not $25.20, which is what a "40% markup" would give and only keeps 28.6% of the price. Divide, don't multiply, when pricing from a margin target. Enter cost and target margin to get the exact price and the markup it implies.

Selling Price Calculator — your numbers

Required selling price

$30.00

Profit per unit

$12.00

Implied markup

66.7%

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

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Worked examples

40% margin target

Product cost $18.00
Target margin 40%
Required selling price $30.00
Profit per unit $12.00
Implied markup 66.7%

The divide-not-multiply rule: $18 ÷ 0.6 = $30, not $18 × 1.4 = $25.20.

Premium 65% margin

Product cost $14.00
Target margin 65%
Required selling price $40.00
Profit per unit $26.00
Implied markup 185.7%

High-margin positioning needs a price 2.9× the unit cost.

Frequently asked questions

Why divide by (1 − margin) instead of multiplying by (1 + margin)?

Because margin is a share of the price, and the price is what you are solving for. Multiplying cost by (1 + margin) applies the percentage to the wrong base (cost) and always under-prices. Cost ÷ (1 − margin) is the only formula that leaves exactly the target margin inside the final price.

What costs belong in the cost figure?

Everything that scales per unit: product cost, inbound freight and duty, payment and marketplace fees, packaging, fulfillment. The more complete the cost, the more honest the required price. Fixed overhead stays out — cover it with contribution margin across all units.

What if the required selling price is above what the market will pay?

That is the calculator doing its job: this product cannot support your target margin at current costs. Your options are to cut unit costs, lower the margin target consciously, bundle to raise perceived value, or not sell that product — the worst option is selling at a price that quietly misses the margin.

Can I use this for services or digital products?

Yes — set cost to your delivery cost per sale (payment fees, hosting, license costs; for services, hours × loaded hourly cost). Digital goods often have tiny unit costs, which is why their required price is driven by positioning rather than this floor.

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Part of the Pricing & Margins collection.