Formula
- Use the units shown beside each field.
- Results update automatically whenever you change an input.
- Displayed values use up to four decimal places, or scientific notation for very small or large numbers. Calculations use standard floating-point arithmetic; exact integer and fraction tools identify their own precision rules.
- All costs and margin are supplied. No local tax treatment, market-price forecast or business profitability guarantee.
Example Calculation
- Ingredient cost: 20 currency
- Packaging cost: 5 currency
- Labor time: 3 h
- Labor rate: 10 currency/h
- Other allocated cost: 5 currency
- Target gross margin: 25 %
Total costs of 60 with a 25% margin require a selling price of 80.
Frequently asked questions
How do I use this calculator?
Enter ingredient cost, packaging cost, labor time, labor rate, other allocated cost, target gross margin. The result updates automatically. Use Reset to restore the example values.
What method does it use?
price=total costs/(1−margin); margin is profit/price, not markup on cost.. All costs and margin are supplied. No local tax treatment, market-price forecast or business profitability guarantee.
Why might a rounded result differ?
The calculation keeps full numeric precision internally, then rounds the displayed result. Rounding intermediate steps by hand can produce a slightly different answer.
Are my inputs saved online?
No. This calculator processes your inputs in your browser. A recently used list stores only calculator names on this device, not your entered values.
Check the assumptions and units before using this result. Read about calculation methods.