Pricing
Find a price from a target margin or markup
A target price runs the margin or markup formula backward. For a margin target, price = cost ÷ (1 − margin), with the margin written as a fraction. For a markup target, price = cost × (1 + markup).
The recommended price then rounds up to the next cent. Rounding to the nearest cent can land below the target. A $1.00 cost and a 30% margin solve to about $1.4286, and $1.42 produces a margin under 30%. The price that still meets the target is $1.43.
| Request | Result |
|---|---|
| Cost $60, margin target 40% | $100.00, exact |
| Cost $1, margin target 30% | $1.43, rounded up |
| Cost $100, markup target 50% | $150.00, which is a 33.33% margin |
| Cost $60, margin target 100% | No finite price |
The target is only as complete as the cost
If the cost is the product alone, the solved price covers that product cost and the percentage. Packaging, postage, labor, marketplace fees, overhead, and tax stay outside it until you include them in the cost or calculate them in the marketplace tool. The margin page says this next to the result.
A zero cost cannot be used to solve a target price. A blank field is left blank. It is not treated as zero, and the form asks for a value.
Check the rounded price forward
After you accept $1.43, the profit is $0.43 and the margin is about 30.07%, which is at least 30%. That forward check is the reason for rounding up. A discount after you set the price changes the revenue and can miss the target even though the original price met it.
Sources and tools
Related guides
Common questions
Can I hit a 100% margin?
Not at a finite price. Profit would have to equal the whole price while the cost stayed above zero.
Does the currency selector convert the price?
No. It changes the symbol shown with the amount. A US dollar figure stays the same number if you switch the symbol to euros.