What this tool tells you
Most owners price by adding a flat percentage to cost and accidentally undershoot their margin. This calculator works backward from the margin you want to the price you must charge to hit it.
How the math works
Enter your delivered cost and target margin percentage. The calculator divides cost by (1 − margin) to produce the price that leaves your desired margin, then shows the profit.
Frequently asked questions
How do I price for a target margin?
Price = cost ÷ (1 − margin). For a 40% margin on a $60 cost, charge $100 — not $84 (which is only a 28.6% margin).
Why does adding 40% not give 40% margin?
Because margin is relative to price, not cost. Adding 40% to cost gives a 28.6% margin. Working backward with cost ÷ (1 − margin) is the correct method.