Product Pricing Calculator

Pricing from cost is the fastest way to make sure a product can carry its costs. Choose whether you think in margins (profit as a share of price) or markups (profit as a share of cost) — the calculator converts between the two and shows the resulting price.

Inputs

Cost per unit

Target type

Target percentage

e.g. 55 for a 55% margin or a 55% markup.

Results

Recommended price

$48.89

Profit per unit: $26.89
Resulting margin: 55.0%
Resulting markup: 122.0%

Margin and markup are not the same: a 50% markup produces only a 33.3% margin. Margin is always the smaller number for the same price.

Formula

Margin-based: Price = Cost ÷ (1 − Margin) · Markup-based: Price = Cost × (1 + Markup)

FAQ

Which should I use, margin or markup?

Margin matches how profitability is reported everywhere else (margins on revenue), so it's safer for planning. Markup is simpler for quick price-setting.

Does this include ad costs?

No — this is cost-based pricing. Add expected customer acquisition and fulfillment costs on top before finalizing, or use the break-even calculator.