Pricing Calculator

Calculate selling price from cost and desired margin, or find your margin from selling price and cost. Two modes in one tool.

Last updated: June 1, 2026

Selling Price
$125.00
Profit/Unit
$50.00
Markup
66.7%

What is Pricing Calculator?

A pricing calculator helps you determine the optimal selling price for products or services by working from either cost-plus (desired margin) or market-backward (competitive price) approaches. Enter your cost and desired margin to find the required selling price, or enter selling price and cost to calculate your actual margin. It also handles markup (cost-based percentage) vs margin (revenue-based percentage) — a critical distinction that many businesses confuse, leading to underpricing.

How It Works

For cost-plus pricing: enter cost and desired margin percentage. Selling price = cost / (1 - margin/100). For margin calculation: enter cost and selling price. Margin = (price - cost) / price × 100. The tool clearly distinguishes between margin and markup: a 50% margin requires a 100% markup (selling at 2× cost), while a 50% markup results in only a 33% margin. It shows both figures and the profit amount so you can communicate pricing in whichever terms your stakeholders prefer.

Common Use Cases

  • Setting product prices that achieve target profit margins for sustainable business operations
  • Converting between markup percentage (used in purchasing) and margin percentage (used in finance)
  • Calculating the selling price needed to cover all costs plus desired profit percentage
  • Evaluating whether competitor prices are viable given your cost structure and margin requirements
  • Determining maximum acceptable cost for a product given a market-driven selling price
  • Modeling price sensitivity — how price changes affect margin and volume break-even

Frequently Asked Questions

What's the difference between margin and markup?

Margin is profit/price, markup is profit/cost. A 50% margin equals a 100% markup.

Learn More

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