Tools · Calculators · Finance Last update: Nov 6, 2026

Selling Price Calculator

Set the price that gives you the margin you want, from what the product costs you.

Enter any two values — the others are calculated.

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Use prices without sales tax or VAT: tax is not part of your revenue.

Selling price formula

price = cost ÷ (1 − margin)

Example: a product costs 80 and you want a 30% margin. The price is 80 ÷ (1 − 0.30) = 80 ÷ 0.7 = 114.29. The profit is 34.29, which is 30% of the price.

Why not just add 30% to the cost?

Because 80 + 30% = 104, and the profit of 24 is only 23% of 104. A margin is a share of the price, so you divide by (1 − margin) instead of multiplying by (1 + margin).

Setting a price that works

  • Use the full cost of the product: purchase price, shipping, packaging and payment fees.
  • Work without sales tax or VAT and add it at the end.
  • Compare the result with competitors’ prices — the right price is also one customers will pay.

Frequently asked questions

How do I calculate a selling price from cost and margin?

Divide the cost by (1 − margin). For a cost of 50 and a 40% margin: 50 ÷ 0.6 = 83.33.

How do I price a product for a 50% margin?

Double the cost. A cost of 35 needs a price of 70.

Should the price include VAT?

Calculate the margin on the price without VAT or sales tax — the tax goes to the state, not to you.