A price margin calculator helps businesses determine selling prices. Specifically, it calculates profit margins based on costs and desired profits. Consequently, companies can set competitive prices while ensuring profitability. Therefore, it's essential for retailers, manufacturers, and service providers.
Price margin represents the difference between cost and selling price. Essentially, it shows how much profit you make per sale. Moreover, it's expressed as a percentage of the selling price. For instance, a 40% margin means you earn $0.40 for every dollar sold.
Your Selling Price Should Be:
Profit: $0.00
First, determine your product cost including all expenses. Then, decide your target profit margin percentage. Next, use our calculator to find the selling price. Alternatively, use the formula: Selling Price = Cost / (1 - Margin/100). Finally, analyze if this price fits your market.
Our price margin calculator uses the standard profit margin formula. First, it takes your product cost and desired margin. Then, it calculates the selling price needed to achieve that margin. Additionally, it shows your profit per item. Moreover, it handles all calculations instantly. Therefore, you can test different scenarios quickly. Ultimately, this helps optimize your pricing strategy.
| Product Cost | Margin % | Selling Price | Profit |
|---|---|---|---|
| $20.00 | 30% | $28.57 | $8.57 |
| $50.00 | 40% | $83.33 | $33.33 |
| $100.00 | 50% | $200.00 | $100.00 |
| $15.00 | 25% | $20.00 | $5.00 |