How the product pricing calculation works
Product pricing starts with your total product cost and the profit you want to earn. The calculator adds your product cost and additional expenses, then uses your desired profit margin to calculate a recommended selling price.
Selling price formula
Total Cost = Product Cost + Additional Costs
Selling Price = Total Cost ÷ (1 − Profit Margin ÷ 100)
Profit = Selling Price − Total Cost
Selling Price = Total Cost ÷ (1 − Profit Margin ÷ 100)
Profit = Selling Price − Total Cost
Example
If a product costs SAR 500 and has SAR 50 in additional costs, the total cost is SAR 550. With a desired profit margin of 30%, the recommended selling price is approximately SAR 785.71 and the estimated profit is SAR 235.71.
Profit margin example
For a total product cost of SAR 1,000 and a desired profit margin of 25%, the recommended selling price is approximately SAR 1,333.33. The estimated profit would be SAR 333.33.