Profit Margin & Pricing Calculator

About Pricing & Profit Margins

Setting the right price is one of the most impactful decisions for any business—pricing affects demand, profitability, and brand positioning. This calculator helps you move fast: enter your cost price and either your desired profit margin (percentage) or the selling price, and get instant results. You can also include tax/VAT to see the final customer price.

Key formulas used by this tool (for clarity):

• Selling Price = Cost ÷ (1 − Margin%)
• Profit Amount = Selling Price − Cost
• Margin% = (Profit Amount ÷ Selling Price) × 100

For small businesses and sellers, understanding markup vs margin is crucial. Markup is often quoted on the cost (i.e., add 50% markup), while margin is the percent of the selling price that is profit. This tool focuses on margin because it aligns directly with profitability targets.

Learn more about pricing strategies and taxes from authoritative sources such as Investopedia, the U.S. Small Business Administration, and your local tax authority. For VAT specifics in Europe visit the European Commission — VAT.

Note: This calculator provides estimates for straightforward products or services. For complex pricing (bundles, recurring services, tiered pricing, channel fees, shipping, or platform commissions) include those costs in the cost price before calculating margin.