Selling Price for Target Margin
Use target margin and percentage fees work backward find selling price.
Your numbers
Selling price wey you need
Business ratio from inputs for the same consistent period. Accounting definitions and industry comparisons fit differ.
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You fit keep up to three snapshots for this tab. Loading one go replace the present inputs.
Formula
Use P = C/(1−m−f). C na unit cost including fixed fees for each sale, m na target profit-margin fraction, and f na fee fraction wey depend on revenue. The fractions together must leave positive denominator.
Use target margin and percentage fees work backward find selling price.
Example wey show the calculation
- Cost of one unit, including fixed fee for each sale
- 60
- Profit margin wey you target (%)
- 25
- Fee rate based on revenue (%)
- 5
- Selling price wey you need
- 85.7142857143
- Profit for each unit
- 21.4285714286
- Percentage-based fees for each unit
- 4.28571428571
Where e fit work and limits
Business ratio from inputs for the same consistent period. Accounting definitions and industry comparisons fit differ.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: 5a653e5d4855 · Example don get check: