Desired margin calculator

How to use

This calculator measures the distance between the price you already charge and the price that would deliver the margin you want. It is not price formation from cost: it is a diagnosis of a price in use, showing how much adjustment is missing and what the current margin is, fees already deducted.

• Knowing the size of the adjustment needed to reach the target margin.
• Checking whether the margin fell after a cost increase.
• Taking a concrete number to a repricing conversation.

1. Enter the current product cost.
2. Enter the price you charge today.
3. Enter the desired margin as a share of the price, plus fees if the sale goes through a card.
4. The result shows the required price, the gap to adjust and the current margin.

Formula

Required price = (cost + fixed fee) ÷ (1 − margin − fees) · Gap = required − current

Example

Cost 60, price 80 and a 40 % desired margin: the required price is 100, 20 are missing and the current margin is 25 %.

Limitations

• The margin is always on the sale price, never on the cost — markup is a different figure.
• A negative gap means the current price already beats the desired margin.

Frequently asked questions