Enter sales pricing inputs
Use the responsive calculator grid below. Large screens show three columns, medium screens show two, and mobile shows one.
Example data table
| Scenario | Direct Cost | Shipping | Packaging | Overhead | Target Margin | Discount | Commission | Required Net Price | Required List Price | Unit Profit |
|---|---|---|---|---|---|---|---|---|---|---|
| Standard deal | $60.00 | $4.00 | $1.00 | $10.00 | 25% | 5% | 6% | $108.70 | $114.42 | $27.17 |
| Volume offer | $42.00 | $3.00 | $2.00 | $8.00 | 18% | 4% | 5% | $71.43 | $74.40 | $12.86 |
| Premium package | $90.00 | $6.00 | $2.00 | $15.00 | 30% | 8% | 7% | $179.37 | $194.96 | $53.81 |
Formula used
1) Base cost per unit
Base Cost = Direct Cost + Shipping Cost + Packaging Cost + Allocated Overhead
2) Required net selling price
Required Net Price = Base Cost ÷ (1 − Commission Rate − Target Margin Rate)
3) Required list price before discount
Required List Price = Required Net Price ÷ (1 − Discount Rate)
4) Target unit profit and markup
Unit Profit = Required Net Price × Target Margin Rate
Markup = (Required Net Price − Base Cost) ÷ Base Cost
This calculator treats target margin as profit divided by net revenue after discounts and before tax. Tax is added afterward for display only.
How to use this calculator
- Enter your currency symbol and all unit cost components.
- Add the target margin percentage you want to protect.
- Include planned discount and commission percentages for realistic pricing.
- Optionally add tax and a current list price benchmark.
- Enter expected unit volume to project revenue and profit.
- Press the calculate button to view results above the form.
- Download the calculated results as CSV or PDF when needed.
FAQs
1) What does target margin mean here?
It is the profit percentage of net sales revenue after discounts. The calculator solves the selling price needed to preserve that margin after commission and cost inputs.
2) Why is commission included in the formula?
Commission is often tied to revenue, not just cost. Ignoring it can understate the price needed to protect the intended margin on each sale.
3) Does tax affect the margin calculation?
No. Tax is displayed after the core pricing result. The calculator treats margin as a pre-tax profitability measure, which is standard for most sales pricing reviews.
4) What if my current price is below the required price?
The list price gap shows how much your current price misses the target. A positive gap means you may need a higher price, lower costs, or lower commercial concessions.
5) Can I use this for services?
Yes. Replace product costs with direct labor, delivery, packaging, software, and allocated overhead per billable unit or project equivalent.
6) What makes the denominator invalid?
If commission rate plus target margin reaches 100% or more, the formula cannot produce a valid price. Revenue would be fully consumed before covering base cost.
7) Is markup the same as margin?
No. Margin compares profit to revenue, while markup compares added value to cost. Both are shown because pricing teams often switch between them.
8) When should I export CSV or PDF?
Use CSV for analysis in spreadsheets and PDF for sharing a clean pricing summary with managers, clients, or sales operations teams.