Price for a target margin calculator
Work out a price from what one costs you and the margin you want: cost-plus pricing, which gives you the floor.
Example numbers, made up: The starting numbers are made up, and the card fee isn't any real processor's.
What you pay to make or buy one: the product, the packaging.
Your own goal: what's left of each sale after its costs, as a share of what the customer pays.
Example numbers
Price to charge
$12.17
Rounded up to the cent. The margin on what the customer pays is at least the 60% you want, after $0.37 in card fees.
Profit on each sale
$7.30
What's left of $12.17 after the $4.50 cost and the card fees.
Markup
170.4%
The $7.67 on top of the $4.50 cost, as a share of the cost.
How it's worked out
What the customer pays = cost ÷ (1 − card fee % − margin). → $4.50 ÷ (100% − 3% − 60%) = $12.162
Price = that, rounded up to the cent. → $12.17
Markup = (price − cost) ÷ cost. → $7.67 ÷ $4.50 = 170.4%
How it's worked out
What the customer pays = cost ÷ (1 − card fee % − margin). → $4.50 ÷ (100% − 3% − 60%) = $12.162
Price = that, rounded up to the cent. → $12.17
Markup = (price − cost) ÷ cost. → $7.67 ÷ $4.50 = 170.4%
Learn the idea behind it
Free lesson
What should you charge?
See why cost only sets the floor, how competitors and value set the rest, and pick a price from a real test.
Take the lesson
The numbers you type stay on this page and aren't sent anywhere. For learning, not financial advice.