Accounting Share · Profit, pricing & growth
Gross Margin Pricing Calculator
Solve for the selling price needed to achieve a target gross margin on a known unit cost. This pricing tool complements the gross profit margin measurement calculator.
The interactive calculator requires JavaScript. The formula and worked example below remain available.
01 / Enter your figures
Make the numbers yours.
Use one currency and consistent time periods. Amounts are shown in your input currency units; no currency conversion is performed.
02 / See the working
Your calculation
Enter your figures, then choose Calculate. Or load the worked example.
03 / Understand the method
Formula and method
Selling price = Cost per unit ÷ (1 − Target margin)
Solve for the selling price needed to achieve a target gross margin on a known unit cost. This pricing tool complements the gross profit margin measurement calculator.
How to use this calculator
- Collect the figures for the same entity, currency and reporting period.
- Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
- Choose Calculate, inspect the breakdown and compare the result with your assumptions.
- Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.
Inputs at a glance
- Cost per unit: A nonnegative numeric input in the units specified by the label.
- Target gross margin (%): A percentage number rather than a decimal fraction.
Worked example
Follow one calculation.
- Cost per unit
- 60
- Target gross margin (%)
- 40
- Calculated result
- 100
Load this example in the interactive form to inspect the intermediate amounts.
Assumptions and interpretation
Enter margin as a percentage of selling price, not markup on cost. Sales taxes, discounts and transaction fees are not automatically included.
The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.
Questions about this tool
What does the gross margin pricing calculation measure?
Solve for the selling price needed to achieve a target gross margin on a known unit cost. This pricing tool complements the gross profit margin measurement calculator.
Which assumptions can change the result?
Enter margin as a percentage of selling price, not markup on cost. Sales taxes, discounts and transaction fees are not automatically included.
Why can displayed totals differ slightly from my spreadsheet?
Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.
Reference and further learning
Financial accounting reference. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.
Look up an accounting term · Practise with accounting questions
Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.
