Product Selling Price Calculator
Calculate selling prices by applying either a target gross margin percentage or markup on cost, with optional sales tax calculations.
Selling Price Formula
By Margin: Price = Cost / (1 - Margin %); By Markup: Price = Cost × (1 + Markup %); Dollar Profit = Price - Cost- Margin-Based Pricing: Divides cost by the complement of your profit margin (e.g. 50% margin = Cost / 0.50).
- Markup-Based Pricing: Multiplies cost by the markup multiplier (e.g. 100% markup = Cost × 2.0).
- Sales Tax: State sales tax applied to calculate the final out-of-pocket customer price.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Base unit cost represents fully landed cost including inbound freight and customs.
- Excludes downstream customer shipping and credit card processing deductions.
Frequently Asked Questions
What is the mathematical difference between margin and markup?
Markup is the percentage added to the cost: ($50 - $25) / $25 = 100% markup. Margin is the percentage of the selling price that is profit: ($50 - $25) / $50 = 50% margin.
What is keystone pricing?
Keystone pricing is a traditional retail standard where merchandise is marked up by 100% over wholesale cost, resulting in an exact 50% gross profit margin.
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