Free small business calculator
Selling Price Calculator
Calculate the selling price needed to achieve a target profit margin. Free pricing calculator for products, services, and lease selling scenarios. No sign-up required.
Enter the minimum numbers needed to get a result.
Updated live as you type.
Planning estimate only. It does not include taxes, overhead allocation, depreciation, discounts, or other business-specific adjustments.
A selling price calculator determines the price needed to achieve a target profit margin given a known cost, used for pricing strategy and margin planning.
Formula and example
Selling price = Cost / (1 - Target margin %)
If your cost is $60 and your target profit margin is 40%, the selling price is $100, profit is $40, and markup is 66.67%.
Methodology & assumptions
Last updated: 2026-06-12Calculation method
Derives the selling price from cost and target margin using the formula Price = Cost / (1 - Margin%). Profit and markup are computed from the resulting price. Assumes the margin is calculated against the selling price.
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
Does not consider demand elasticity, competitor pricing, or volume discounts. The target margin assumes the price is achievable in the market. Use alongside the break-even calculator for volume planning.
Input definitions
- Cost: Your total cost per unit, including materials, labor, and overhead.
- Target profit margin: The profit margin percentage you want to achieve.
Frequently asked questions
How do I calculate selling price from margin?+
Use the formula Selling price = Cost / (1 - Margin%). For example, $60 / (1 - 0.40) = $100.
What is a good profit margin to target?+
It varies by industry. Retail often targets 30-50%, services 40-60%, and ecommerce 20-40%. The key is to cover costs, overhead, and leave room for profit.
What if my calculated price is too high for the market?+
If the market won't support your target margin price, look for ways to reduce your cost, trim overhead, or position for premium pricing through differentiation.
How is this different from the markup calculator?+
This calculator works backward from a target margin. The markup calculator tells you the markup from cost and selling price. Use this when you have a margin goal; use markup when you want to see the percentage on your current pricing.
Can I use this calculator for lease-to-own or rent-to-own pricing?+
Yes. For lease selling scenarios — equipment rentals, rent-to-own contracts, or lease-with-option-to-buy — input your total equipment or asset cost as the cost, set your desired margin, and the calculator gives you the base selling price. Add the lease term duration to determine monthly payments. For a full buy vs lease comparison, use our Equipment Buy vs Lease Calculator.
Related guides
Go deeper with in-depth guides on the concepts behind this calculator.
Next: What to do after this
Pick one next action. These are sequenced by the most common workflow after this calculation.
Continue the workflow
Estimate margin, convert margin to markup, then check the sales volume needed to break even.
Profit Margin Calculator
Calculate profit, margin percentage, and pricing health from cost and revenue.
Gross Margin Calculator
Calculate gross profit and gross margin from revenue and COGS.
Markup Calculator
Calculate selling price, markup, profit, and margin from cost.