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Price From Target Margin

✔ Reviewed by the 67858.com editorial teamUpdated October 27, 2026Methodology

The price you must charge to hit a target gross margin.

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Quick answer: Set prices from the margin you need rather than from a habit markup. The equivalent markup is shown so you can communicate it to buyers or retail partners.

How to use the Price From Target Margin

  1. Enter your figures in the fields above — results update instantly as you type.
  2. Choose your currency symbol (the maths is the same in any currency).
  3. Use Share result to save a link that reloads your exact inputs, or Print for your records.
  4. Compare scenarios by changing one input at a time and noting how the main result moves.

Formula

Price = Cost ÷ (1 − Target margin)

Worked example

A 35 cost at a 45% target margin requires a price of about 63.64.

Frequently asked questions

Why not cost × (1 + margin)?

That calculates markup, which yields a lower margin than you intended.

Should I round?

Psychological pricing (e.g. ending in .99 or 8 in some markets) can lift conversions — round up after calculating.

Learn more

Assumptions & limits

Results are estimates based on the inputs you provide and the formula shown, rounded for display. They do not account for every fee, tax rule or market condition. This tool is educational and is not financial, tax or legal advice — confirm important decisions with a qualified professional.

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