Maximum Cost for a Target Margin
Set price and margin first, then reverse the maximum allowable cost. This differs from adding markup to a known cost, so establish which percentage base your pricing question uses.
- Runs in your browser
- Nothing is uploaded
- No signup; device limits apply
Numbers stay on your device. Nothing is sent to a server.
Next step
How to use this tool
Enter USD selling price and margin as a percentage of that price. Decide which manufacturing, shipping or selling fees belong in cost before comparing scenarios consistently.
Results and examples
Maximum cost is price × (1 − margin), with profit as the difference. The accompanying markup uses cost as denominator, explaining why two percentages can describe the same profit.
Worked example
USD 100 price at 20% margin allows USD 80 cost, USD 20 profit and 25% markup.
Limitations
- Actual cost components are not automatically aggregated.
- Omitted tax, returns, discounts and overhead make this differ from net profit.
Fields
| Field | Guidance and constraints |
|---|---|
| Selling price | Accepted range: 0.01–10000000 · Input step: 0.01 |
| Margin percent | Accepted range: 0–99.99 · Input step: 0.01 |
Data handling
Processing stays in the current browser tab; the site does not upload tool input for the calculation itself.
Sources
Frequently asked questions
Are 20% margin and 20% markup equal?
No. Their denominators are price and cost respectively.
What if actual cost exceeds the limit?
With other inputs unchanged, the target margin will not be met.
Related tools
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