Price calculator solves for the selling price when you know cost and the gross margin you want.
About this calculator
Price calculator solves for the selling price when you know cost and the gross margin you want. Gross margin is profit as a share of revenue — the standard metric on retail P&L statements and investor decks.
Enter cost and target margin. The calculator returns revenue (selling price), gross profit in rupees, and markup on cost. A 40% margin on ₹1,250 cost means pricing at ₹2,083.33 with ₹833.33 profit.
Margin and markup differ. The same ₹833 profit is 66.7% markup on cost but only 40% margin on price. Stores that think in markup often underprice when they mean margin.
Use alongside [[margin]] to verify an existing price, [[markup]] for cost-plus markup workflows, and [[profit-goal]] when you know a profit target and need the sales volume to match.
Common uses
- Set retail price from wholesale cost and a 35% gross margin target
- Convert a buyer
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Frequently asked questions
What price gives 40% gross margin on ₹1,250 cost?
Revenue = 1250 ÷ (1 − 0.40) = ₹2,083.33. Gross profit = ₹833.33. Markup on cost = 66.67%. Enter cost 1250 and margin 40.
Why divide by (1 − margin) instead of multiplying cost?
Margin is profit ÷ price, not profit ÷ cost. Multiplying cost by 1.4 gives markup thinking, not margin thinking. Dividing cost by (1 − margin) puts profit in the correct ratio to revenue.
Is this the same as the markup calculator?
No. Markup adds a percentage on top of cost. This tool targets gross margin on the final price. A 50% markup is only a 33.3% margin. Use [[markup]] when you think from cost upward.
What margin do retailers typically target?
Grocery runs 2–5% net but higher gross on some SKUs. Apparel gross margin is often 50–60%. SaaS gross margin can exceed 80%. Know your category before picking a target.