Free tool
Price for a target margin calculator
Start from what one costs you and the margin you want, and work out the price. This is cost-plus pricing: it gives you the floor. What competitors charge and what it's worth to customers decide where above it you land.
Already have a price? The markup vs. margin calculator goes the other way.
Example numbers to start (example number: Made up to show how the calculator works). The starting numbers are made up, and the card fee isn't any real processor's. Type your own: they stay on this page and aren't sent anywhere.
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.
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%
Learn the idea behind it
A calculator gives you the number. The lesson shows you what it means and what to do about 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
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For learning, not financial advice. See all the tools.