Product Pricing Simulator
Calculate suggested product price to hit target gross margin.
Inputs
Suggested Product Price
$62.5
Frequently Asked Questions
How to calculate product price based on margin?
Divide your cost per unit by (1 - your desired gross margin percentage). If it costs $20 and you want a 50% margin, it's 20 / (1 - 0.50) = $40.
Margin vs Markup
Margin is a percentage of the selling price that is profit. Markup is a percentage of the cost added to get the selling price. A 50% markup on a $10 item makes it $15 (which is only a 33% margin).
Pricing Products Correctly
Do not confuse markup with margin. To ensure you remain profitable after Customer Acquisition Cost (CAC) and overhead, set an absolute margin target and let the math determine the minimum acceptable price.
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