Product Pricing Calculator
Find a price that meets your target margin after included per-unit costs.
Formula
Price = unit cost ÷ (1 − target margin ÷ 100). We round upward to the next cent so rounding does not put the result below your target.
Worked example
An illustrative $24 unit cost and 20% margin target give a $30 price and $6 profit after included cost: $6 ÷ $30 = 20%.
Margin and markup differ
Margin is a share of the price. Adding 20% to $24 gives $28.80, with approximately 16.67% margin. Check an existing price with the Profit Margin Calculator.
Learn why adding a margin percentage to cost misses the target in our margin vs markup guide.
Assumptions and limits
Unit cost must be positive. Target margin is 0% to 99.99%. Fees that depend on price are not modeled automatically. This is a cost-based estimate, not a demand forecast or pricing recommendation. Inputs and calculated price are limited to $1 billion. Displayed percentages round to two decimals.
Terminology reference: Shopify's margin/markup explanation. The target-price equation follows from the stated formula.