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