Business planningReverse Margin Calculator
Find allowable unit cost from selling price and target gross margin, or find the required price from cost. Compare margin with equivalent markup.
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Business Calculators
Turn pricing and cost assumptions into numbers you can compare. Start with the reverse margin calculator for selling price, allowable unit cost, gross profit, margin, and markup.
Updated July 20, 2026Per-unit pricingVisible assumptions
Pricing
Work backward from the margin you need
Margin and markup are related, but they use different denominators. Use one cost basis throughout the comparison.
Translation Cost Calculator
Combine source-word count, per-word rate, minimum charge, fixed fees, and discount in one visible cost scenario.
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Choose what the margin needs to cover
A narrow product cost and a fully loaded cost answer different questions. Name the cost basis before comparing scenarios.
Market price is known
Enter the selling price and target gross margin to find the highest unit cost that fits. Use it as a purchasing ceiling or operating target.
Unit cost is known
Enter cost and target gross margin to find the selling price needed. Compare that result with realistic customer prices and discount plans.
Cost and price are known
Enter both to calculate current gross margin and markup. A negative result means cost is above the selling price.
Costs that may belong in the input
- Product, material, or direct service cost
- Inbound freight and packaging
- Marketplace or card-processing fees
- Direct labor tied to each unit or project
- Expected returns, spoilage, or discount allowance
Whether each item belongs in unit cost depends on the decision. The calculator only includes what you enter.
What gross margin does not decide
- Customer willingness to pay
- Cash-flow timing
- Tax treatment
- Overall net profit
- Competitor response or demand
Use the result as one input to pricing, then compare it with current costs, sales data, and professional accounting guidance where needed.
Methodology notes
- Every result page states its formula, inputs, assumptions, worked examples, and practical limits.
- Defaults are examples, not recommended business targets.
- Rounding is for display; the calculator uses the unrounded values in later steps.