EN · Language: English
Start a projectNew project

Free tool · your data stays in the browser

From the shelf price back to the cost the product can afford.

Enter the retail price and what you know of the costs. The calculator shows net revenue, landed cost, margins — and the manufacturing cost that keeps the margin you want.

Formulas and assumptions
  1. Net price excl. VAT = retail / (1 + VAT)
  2. Wholesale: net price × (1 − wholesale discount)
  3. Net revenue = net price × (1 − commission) × (1 − returns)
  4. Product cost = materials + making + trims
  5. Landed cost = product cost + shipping + duties × product cost + sampling / quantity
  6. Gross margin = (net revenue − landed cost) / net revenue
  7. Markup = (net revenue − landed cost) / landed cost
  8. Target manufacturing cost = net revenue × (1 − target margin) − shipping − sampling / quantity, divided by (1 + duties)

Professional kit

Margin-Backwards Calculator

Online calculator (free to use); the paid version adds saved scenarios, the XLSX model and the pricing guide.