Selling Price Calculator: Price Your Product for a Target Margin

If you know your cost and the margin you want, this calculator gives the price to charge. You can add GST to see what the customer will finally pay.

FreeNo sign-upRuns in your browserUpdated 2 Nov 2026
₹
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Margin is a share of the selling price.
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Current main slabs are 0%, 5%, 18% and 40%. Check the rate for your item or service.
Your resultLive

Estimates for general information. This is not tax or accounting advice.

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How to use this calculator

  1. Enter your cost per unit.
  2. Enter the margin you want.
  3. Optionally enter the GST rate for the customer price.
  4. Read the selling price, profit and price including GST.

The formula

Selling price = Cost ÷ (1 − Margin ÷ 100). Profit = Selling price − Cost. Price including GST = Selling price × (1 + GST ÷ 100).

Worked example

Cost ₹800 with a 20% margin: selling price = 800 ÷ 0.8 = ₹1,000 and profit = ₹200. With 18% GST the customer pays ₹1,180. The equivalent markup on cost is 25%.

Understanding your result

For a margin target, dividing by (1 − margin) is correct. Multiplying the cost by 1.20 would only give a 16.7% margin. The tool also shows the equivalent markup so you can use whichever your accounts use.

When to use it

  • Price new products to hit a margin target.
  • Check whether a competitor price leaves you any margin.
  • Set prices that include GST.

Assumptions and limits

Margin must be below 100%. Costs should include everything you pay per unit. Discounts and marketplace fees are not included.

Frequently asked questions

How is this different from the markup calculator?

This one starts from the margin you want. The markup calculator starts from a markup percentage.

Why can margin not be 100%?

A 100% margin would need a cost of zero.

Does cost include GST?

Use the cost without GST if you can claim input credit.

How do I include shipping?

Add shipping per unit to the cost.

What if I plan to offer discounts?

Raise the target margin or the list price to allow room.