§ 01 / TOOL
$50 at 40% margin.
STATUS ACTIVEOUTPUTS 3LATENCY <1MS
> INPUT
MODE TARGET MARGIN
$
AT TARGET MARGIN
AT TARGET MARGIN
%
SELLING PRICE.
PRICE
// RESULT
$83.33
// PROFIT
$33.33
// MARKUP
66.6667%
// FORMULA
$50.00 ÷ (1 − 40%) = $83.33
To hit 40% margin on $50.00 cost, sell for $83.33 — profit $33.33, markup 66.6667%.
§ 02 / ABOUT
Pricing to hit a margin.
To hit a target gross margin, you can't just add that percent to cost — that's a markup. Margin is a slice of the final price, so you need to divide. The formula is price = cost / (1 − margin/100). A $10 item at a 40% target margin prices at $10 / 0.6 = $16.67.
// WHY DIVISION, NOT ADDITION
- 40% margin ≠ 40% markup. 40% markup on $10 is $14, which is a 28.6% margin — too low.
- The denominator matters. Margin is profit ÷ price; markup is profit ÷ cost. Same profit, different percentage.
- Higher targets bend the curve. A 50% margin doubles your cost. A 75% margin quadruples it.
// WHEN TO USE THIS
Use this tool when you know what margin you need and want the price that delivers it — SaaS pricing, retail anchor items, and wholesale contracts all work this way. If you instead know your markup and want the price, use Markup. If you have a cost and a price and want to know the margin, use Margin.
Related: Margin, Markup, Percentage.
§ 02 / FAQ
Questions. Answered.
How do I calculate selling price from a target margin?+
Divide the cost by (1 − the target margin as a decimal). So $50 at a 40% target margin is $50 ÷ (1 − 0.40) = $83.33. Type cost on the left and margin % on the right — the required selling price appears instantly.
Why can’t the margin be 100% or higher?+
A 100% margin would mean profit equals the selling price — implying zero cost. Anything above 100% is mathematically undefined because it would require the cost to be negative. If you need to mark something up aggressively, use the markup calculator instead (markup can exceed 100%).
Should I price by margin or by markup?+
Use margin when you’re planning profitability (what % of revenue becomes profit) — this is what finance and retail scorecards track. Use markup when you want to set prices quickly from cost — it’s the simpler mental model for buyers and line staff. Many businesses set prices by markup but report performance by margin.
Does this account for operating expenses?+
No. The result is the price needed to hit your target gross margin — cost of goods only. Your net margin (after rent, labor, marketing, taxes) will be lower. If you need to hit a net margin, increase your target gross margin by the ratio of operating expenses to revenue.
Does the URL update so I can share or bookmark a calculation?+
Yes. As you type, the URL updates to /selling-price/50-at-40 (cost at margin%). Copy the URL bar to share, or use the SHARE button in the answer bar for one-click options.
Are my calculations stored anywhere?+
No. Math happens entirely in your browser. The URL syncs locally and we keep no record of what you compute.
§ 04 / TOOLS
Related calculators.
§ 05 / READING