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Target Margin or Markup Pricing — result sheet
Set a selling price using either a profit-margin target or a markup-on-cost target, and see both percentages so their different denominators are never confused.
Inputs used
Results
Visual chart
Breakdown
Calculation steps
Returned data table
Formula and methodology
Formula: For margin m: price = cost / (1 - m / 100). For markup u: price = cost x (1 + u / 100). Profit = price - cost; margin = profit / price x 100; markup = profit / cost x 100.
A 40% margin on a cost of 12 requires a price of 20, whereas a 40% markup produces a price of 16.8 and a margin of about 28.57%. Margin is a share of the selling price; markup is a share of cost. A positive-cost business cannot reach a 100% margin at a finite price.
This result follows the calculator's declared inputs, precision, validation boundaries, and model limits.
Input contract
- Cost per unit — Use a positive cost in one consistent currency.; minimum 0.01; maximum 1000000000000
- Target definition — 2 choices
- Target percentage — %; Margin must be below 100%. Markup may exceed 100%, up to this tool's 1000% limit.; minimum 0; maximum 1000
Worked example
| Input | Value |
|---|---|
| Cost per unit | 12 |
| Target definition | margin |
| Target percentage | 40 |
Selling price: 20.00; profit per unit: 8.00; profit margin: 40.00%; markup: 66.67%.
Assumptions and limits
- Cost is positive and the target is nonnegative; margin targets must be below 100%, while markup targets may be as high as 1000%.
- The input cost defines what profit means. Taxes, overhead, payment fees, and discounts are excluded unless already represented in cost.
- All amounts use the same currency with no mandated price rounding; the output is arithmetic, not a demand forecast or recommended market price.
Calculator note
Source and methodology
Use the official WorldCalculate methodology policy for the source, formula, precision, and boundary standards behind this calculator.
Planning estimate, not financial, medical, legal, or professional advice. © WorldCalculate — reuse with attribution. Built and curated by Hassan ALRowaie.
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