Set a price from a target margin

The job

Pricing a product, quoting a job, or checking whether a discount still leaves profit — the arithmetic trips people because margin is measured on the selling price while markup is measured on the cost. Mixing them up underprices the work.

How to do it

Pick which pair you already know — cost + price, cost + target margin, price + margin, or cost + markup — and enter the two values. The tool fills in cost, price, profit, margin, and markup together, so you can read the figure you were missing.

• Margin % = profit ÷ selling price — the share of the price that is profit.
• Markup % = profit ÷ cost — the share added on top of the cost.
• For the same item, the markup is always a bigger number than the margin.

Worked example

A 30% margin on cost 700 needs price = 700 ÷ (1 − 0.30) = 1,000 — not 910. Enter cost 700 and margin 30: the tool shows price 1,000, profit 300, markup 42.9%. Asking for margin 100% is refused — it would need an infinite price.

Limits

Amounts are currency-neutral — keep them in the same currency and tax basis. If your prices are tax-inclusive, strip or add tax with the consumption tax tool first so the margin reflects the real figure.