How this number is made
If you want a margin on the selling price, you cannot multiply the cost by the margin. You divide the cost by one minus the margin. A 100% margin is impossible. It would mean the cost is zero.
- Margin is the share of the price that is not cost.
- Keep the margin under 100%.
Formula
Price = cost ÷ (1 − margin).
Worked example
With the figures already in the form, price is $66.67.
Questions
What margin is realistic?
Whatever your category and your overhead allow. This page only finds the price that hits the margin you named.
Does this include operating expenses?
Only if they are in the cost or in the margin you are trying to clear. A gross margin and a net margin are different targets.