AixKit
All-in-One Online Calculators
AixKit
All-in-One Online Calculators
Part of: Finance →
Setting price from guesswork is one of the most common and costly mistakes in retail, ecommerce, and service businesses. This selling price calculator lets you calculate selling price from cost using a target margin %, markup %, profit amount, or revenue goal — and returns the exact price you need to charge. Ideal for ecommerce sellers, retail buyers, wholesalers, and service businesses: use it to price new products, set quote rates, or verify that a proposed price actually covers cost and delivers the profit you expect. The result includes both margin and markup so you always have the complete pricing picture.
A small pricing error can wipe out more profit than most businesses expect — this calculator helps you price from numbers, not guesswork.
Key Selling Price Formulas
From Margin: Selling Price = Cost ÷ (1 − Margin % ÷ 100)
From Markup: Selling Price = Cost × (1 + Markup % ÷ 100)
From Profit: Selling Price = Cost + Desired Profit
Example: Cost 100 → Target Margin 33.33% → Selling Price 150 → Markup 50%
Used by ecommerce sellers, retailers, and business owners to make confident pricing decisions. No data stored. Calculations run instantly in your browser.
Tip: Use “From Margin %” when you know the profit percentage you want to keep from each sale. Use “From Markup %” when pricing directly from cost.
Selling Price = Cost Price + Profit
Selling Price = Cost Price ÷ (1 − Margin % ÷ 100)
Selling Price = Cost Price × (1 + Markup % ÷ 100)
The correct formula depends on whether you are pricing from a target profit amount, a margin percentage, or a markup percentage.
The calculated price is the minimum needed to hit your margin or profit target. It is a floor — you can price higher if the market supports it, but pricing below it means underperforming your target.
Margin tells you how much of revenue is profit. Markup tells you how much you added above cost. Both are shown in every result so you can confirm your numbers are consistent with your pricing model and financial reporting.
After setting your selling price, enter it into the Profit Margin Calculator to confirm the resulting gross margin matches your target and financial model before committing to the price.
Calculate your margin on the GST-exclusive (net) selling price. Once confirmed, use the GST Calculator to calculate the GST-inclusive price to display to customers on invoices and product listings.
There is no single correct way to calculate a selling price — the right method depends on where you start and what constraint matters most to your business. The three most common approaches are:
The most widely used method in retail and financial reporting. You know your cost and want to achieve a specific gross margin percentage. The formula is:
Selling Price = Cost Price ÷ (1 − Margin % ÷ 100)
If your product costs $100 and you need a 40% gross margin: Selling Price = 100 ÷ (1 − 0.40) = 100 ÷ 0.60 = $166.67. The resulting markup is 66.67% — which is not the same as the margin, an important distinction.
The standard method in wholesale, distribution, and supplier pricing. You add a percentage on top of cost:
Selling Price = Cost Price × (1 + Markup % ÷ 100)
A $100 product with a 50% markup: Selling Price = 100 × 1.50 = $150. The gross margin on this is 33.33% — not 50%. This difference is critical and is why this calculator always shows both figures together.
The simplest approach: add the profit amount you need to your cost. This is useful for quoting work, custom orders, and project-based pricing where you have a specific profit target per job.
Selling Price = Cost Price + Desired Profit
After setting your selling price using any of these methods, use the Profit Margin Calculator to validate the resulting margin and confirm it meets your profitability target before committing to the price.
Margin and markup are two different perspectives on the same transaction — and the selling price they produce from the same cost will always differ unless the target percentage is 0%.
| Approach | Input | Formula | Selling Price (Cost = 100) | The Other Metric |
|---|---|---|---|---|
| From 30% Margin | Cost + Margin % | Cost ÷ (1 − 0.30) | $142.86 | Markup 42.86% |
| From 30% Markup | Cost + Markup % | Cost × 1.30 | $130.00 | Margin 23.08% |
| From $50 Profit | Cost + Profit $ | Cost + 50 | $150.00 | Margin 33.33%, Markup 50% |
The same 30% target produces $142.86 when applied as a margin and only $130.00 when applied as a markup. This is why it is essential to know which measure you are working with. If your business needs a 30% gross margin but you apply a 30% markup, you will consistently underperform your profit target.
For a detailed exploration of the margin vs markup relationship, see the Markup Calculator, which explains the conversion formulas and shows how the two metrics relate for any combination of cost and price.
Underpricing is one of the most financially damaging and persistent problems in small business. Unlike an obvious loss, underpricing is invisible — the business appears to be generating revenue and may even feel busy, but profit never accumulates. The cause is almost always a selling price that was set without a clear cost and margin framework.
Ecommerce sellers on platforms like Amazon, eBay, Etsy, and Shopify face platform fees of 5–15% on top of payment processing (1.5–3%). If you set price based on a 20% markup over your product cost but then pay 12% in fees and 2% in processing, your actual margin is 6–8% — which may not cover returns, storage, or advertising. This calculator helps you build fee costs into your cost base before setting the selling price.
Many businesses set price by looking at a competitor's price and going slightly lower. This approach ignores your own cost structure. If your competitor has a lower cost base (larger volume, better supplier terms, lower overhead), matching their price may generate a loss for your business even as it produces profit for theirs.
Service providers frequently underprice by calculating an hourly rate that covers their time but not their overhead (software subscriptions, insurance, marketing, account management time). A correct selling price for a service quote includes a full cost base — not just the production hours.
After establishing your correct base selling price, use the Discount Impact Calculator to test how discounts affect your price — it calculates the exact profit loss and shows how much extra sales volume is needed to compensate. Use the Break-even Calculator to see how your price affects break-even and the number of units you need to sell before your business becomes profitable.
The most damaging habit. Without a cost basis and a target margin, every price is arbitrary. This calculator gives you a structured starting point: enter your actual cost and the margin or profit you need, and the price follows from the numbers.
If your product costs $50 to manufacture but $8 to ship, $4 in platform fees, and $2 in payment processing, your true cost base is $64 — not $50. A 40% markup on $50 gives $70, which is actually only a 9.4% margin on real cost. Always build the complete cost into the calculation before using this calculator.
Applying a 30% markup when the business plan requires a 30% margin will consistently underprice. The selling price difference from a $100 cost is $130 (markup) vs $142.86 (margin). Over thousands of transactions, this difference is significant.
If you are GST-registered, the GST component of a sale is not your revenue — it flows to the tax authority. Including GST in your selling price when calculating margin inflates the denominator and understates actual margin. Use the GST Calculator to extract the net price before running your margin calculation.
A competitor's price reflects their cost structure, not yours. Their volume discounts, supplier agreements, and overhead allocation may be completely different. Set your price from your own cost base, then compare to the market to assess competitiveness — not the other way around.
Raw material prices, shipping rates, and supplier costs change. If your selling price was set 12 months ago from a lower cost base, your current margin may be significantly lower than expected. Recalculate your selling price whenever any cost input changes materially.
Cost breakdown: Product $18 + Shipping to warehouse $3 + Platform fee 12% + Payment processing 2%
Effective product cost (ex fees): $21. To achieve a 35% margin after fees (fee rate: 14%), the base selling price (net of fees) = $21 ÷ 0.65 = $32.31. Add 14% fees: effective recommended price = approximately $37.50.
Result: Margin ≈ 35% | Markup ≈ 78.6% | Profit per unit ≈ $13.10
Fees must be included in the cost base, not treated as a deduction from the result.
Wholesale cost: $65 per pair. Target gross margin for the store: 55% (industry benchmark for footwear retail).
Selling Price = $65 ÷ (1 − 0.55) = $65 ÷ 0.45 = $144.44. Rounded to $145 retail.
Result: Margin 55.2% | Markup 123.1% | Profit $80 per pair
Retail markup is typically 100–150% — the corresponding margin is 50–60%.
Cost base per project: 8 hours production ($40/hr effective cost) = $320 + software/tools allocation $40 + admin/communication time $60 = Total cost $420.
Target margin: 45% (typical for design agencies). Selling Price = $420 ÷ 0.55 = $763.64. Quote at $750–$800.
Result: Margin 44–46% | Markup 79–90% | Profit $330–$380 per project
Service businesses must include overhead allocation in cost — not just billable hours.
After calculating your final selling price, use the Percentage Calculator for quick cross-checks on any percentage figure in your pricing model.