Target Margin Selling Price
Reverse a target margin and percentage fees into a selling price.
Your numbers
Required selling price
Business ratio based on your consistent-period inputs. Accounting definitions and industry comparisons may differ.
Scenario comparison
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Formula
Use P = C/(1−m−f). C is unit cost including fixed per-sale fees, m is the target profit-margin fraction, and f is the revenue-based fee fraction. The combined fractions must leave a positive denominator.
Reverse a target margin and percentage fees into a selling price.
Worked example
- Unit cost including fixed per-sale fees
- 60
- Target profit margin (%)
- 25
- Revenue-based fee rate (%)
- 5
- Required selling price
- 85.7142857143
- Profit per unit
- 21.4285714286
- Percentage fees per unit
- 4.28571428571
Scope and limitations
Business ratio based on your consistent-period inputs. Accounting definitions and industry comparisons may differ.
Inputs are checked for missing values and allowed ranges. A result outside the finite numeric range is not displayed. Rounding affects display, while the calculation uses the model’s numeric precision.
Check your units and assumptions before relying on a result. Changing a label does not convert a currency or physical unit.
Formula version: 5a653e5d4855 · Example checked: