Target margin pricing works backward from the share of the final selling price you want to keep as profit.

Required price: $92.31
Profit per sale: $32.31
Resulting markup: 53.85%

Base cost
$60.00
Target margin %
35.0%

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Pricing

Target Margin Pricing Calculator

Use target margin pricing when the margin itself matters more than the markup on cost.

This calculator works backward from the profit share you want to keep, which makes it useful when you care more about margin discipline than a simple cost-plus formula.

How to use this page

Start with your best current estimate, adjust the inputs until the result feels realistic, and use the related tools below when you want to pressure-test price, profit, or payout from another angle.

Work backward from a desired margin to the price you need to charge.

Use the calculator with the examples below to test ideas quickly and come back to the same setup later.

Worked examples

Start from a realistic scenario

Each example opens the same calculator with shareable URL state.

Margin-led product pricing

A seller pricing from a fixed cost base and a margin target.

$86.67required price

Load this example

Service package with margin guardrails

A service offer where the team wants a minimum profit share.

$738.46required price

Load this example

FAQ

Quick answers

Short answers for the questions that usually come up first.

How is target margin pricing different from target markup pricing?

Margin is measured from the final price, while markup is measured from cost, so the required price is not the same.

Why cap target margin below 100%?

Because a 100% margin would require an impossible infinite selling price if cost is not zero.