BusCalcTools

Pricing Calculator — Find the Right Selling Price Instantly

Set the optimal selling price from cost and target margin (or markup). Adds VAT or sales tax automatically by region.

Inputs

$

Your total cost to produce or acquire

%

Profit as a percentage of selling price

%

Pre-filled at 0% for United States

Recommended Price (ex-sales tax)

Healthy

$33.33

Healthy margin at this price.

Profit per unit: $13.33

Equivalent Markup

66.7%

Margin and markup are two views of the same sale

How it works

Toggle between margin-based pricing (you want X% margin on each sale) and markup-based pricing (you want to add X% on top of cost). The calculator returns the price both before and after tax. Tax pre-fills based on your region: 0% for the USA (sales tax added at checkout), 20% for the UK (VAT), 15% for South Africa (VAT).

See the formula
Selling Price (from margin) = Cost / (1 − Desired Margin / 100)
Selling Price (from markup) = Cost × (1 + Markup / 100)

Example (margin mode): Cost = $20 | Target Margin = 40%
  Selling Price = $20 / 0.60 = $33.33
  Equivalent Markup = ($13.33 / $20) × 100 = 66.7%

Frequently Asked Questions

How do I calculate the selling price from cost and margin?
Selling Price = Cost ÷ (1 − Desired Margin). This formula is used when you know your cost and the profit margin percentage you want to achieve. Example: cost $50, target margin 40% → Selling Price = $50 ÷ 0.60 = $83.33.
What is cost-plus pricing?
Cost-plus pricing means setting your price by adding a fixed markup to your cost. It is the simplest pricing method: know your cost, add your desired profit, and that is your price. The risk is that it ignores what the market will actually pay.
How do I price a service (not a product)?
For services, "cost" includes your time at a target hourly rate plus any direct expenses. Use the Freelance Rate Calculator to determine your minimum hourly rate, then use this tool to set project prices that achieve your target margin.
Should I include VAT/sales tax in my advertised price?
In the UK, consumer-facing prices must be displayed inclusive of VAT. In the USA, sales tax is typically added at checkout and not included in advertised prices. In South Africa, prices are generally displayed inclusive of VAT. This calculator handles all three conventions.
How does pricing affect profit margin?
A small price increase has a disproportionately large effect on margin. If your cost is $50 and you sell at $70 (30% margin), a $5 price increase to $75 raises your margin to 33.3% — a 10% improvement in profitability from a 7% price increase.

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Markup Calculator

Convert cost price to selling price at any markup %.

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For information only. This calculator does not constitute financial, accounting, or tax advice. Consult a qualified professional before making business decisions.