Product Pricing Calculator 2026-27 — GlobalCalc

GlobalCalc

Inputs

Unit cost

Target margin

Results update as you type

Results

Your selling price

£23.33

Equivalent markup—

Profit per unit—

Total cost per unit—

Retail price through a reseller—

Monthly profit at that volume—

Units to cover monthly overhead—

Margin achieved—

Reviewed September 2026. Management accounting arithmetic: the same formulas in every market, in your own currency. The FRC expects alternative performance measures such as EBITDA to be reconciled to the nearest statutory figure.

All calculations run 100% in your browser. The calculator code does not submit your figures to GlobalCalc to obtain a result.

About product pricing

Method

How the product pricing calculator works

Margin and markup are not the same, and confusing them is the most common pricing error. Markup is the addition to cost; margin is the share of the selling price. A 50% markup gives a 33% margin.

The channel matters as much. If a retailer takes 50%, a product that needs a 20 wholesale price must retail at 40, and you have to be sure it sells there.

Formula: price = cost / (1 − margin); markup = price/cost − 1

Data

Worked examples

Inputs	Your selling price	Note
12 cost, 40% margin	£23.33	23.33 selling price
Through a reseller	£23.33	retails at 46.67
A thinner margin	£17.50	17.50

FAQ

Frequently asked questions

What is the difference between margin and markup?

Markup is the addition to cost; margin is the share of the selling price. A 50% markup is a 33% margin — they are never the same number.

What margin should I target?

It varies enormously by industry. Grocery runs on 2 to 5%, software on 70 to 90%. Compare against your own sector, not a general rule.

How do I price for retail?

Work backwards. Decide the shelf price the market supports, take off the retailer's margin, and check what is left covers your cost and margin.

Should overhead be in the unit cost?

For pricing decisions, yes. A price that covers only direct cost plus margin does not cover the business.

Why can I not have a 100% margin?

Because margin is a share of the price. At 100% the cost would have to be zero, which is why the formula diverges.

Sources

Where these figures come from

Corporate Finance Institute — EBITDA — why EBITDA is a non-GAAP measure with no single definition
US SEC — Non-GAAP Financial Measures, Compliance & Disclosure Interpretations — the disclosure rules that exist precisely because EBITDA is not standardised
Financial Reporting Council — the UK accounting and audit regulator

Last checked: September 2026. These are standard management-accounting definitions; where a term has no single agreed definition, the page says so.