Free tool
Price for a target margin
Start from what the item costs you and the margin you want to keep. The tool gives the price before GST, the GST and the price your buyer pays, rounded up to a price point if you want one.
Include freight and loading if you pay them.
Result
- Selling price before GST
- ₹1,133.33
- GST at 18%
- ₹204.00
- Price the buyer pays
- ₹1,337.33
- Profit per unit
- ₹283.33
- Margin at this price
- 25.0%
Selling price = cost ÷ (1 − margin). For goods sold in packs to consumers, the printed MRP must include all taxes, so it can be no lower than the price the buyer pays.
Next step in MatruOS
MatruOS opens the item with this cost, price and GST rate, and keeps your margin in view each time the purchase cost changes.
Set this price on your item in MatruOSKeep this result
Method
How this is worked out
Every figure the tool uses is listed here. Assumptions are fields in the tool, so you can change them to match your business.
- Selling price before GST = cost ÷ (1 − margin).
- Price the buyer pays = selling price × (1 + GST rate). Rounding moves this price up to the point you choose, and the price before GST is worked back from it, so the margin can only go up.
- For packaged goods sold to consumers, the printed retail sale price (MRP) includes all taxes.
Questions
Questions people ask
Why is adding the margin percentage to cost wrong?
Adding 20% to cost gives a 20% markup, which is only a 16.7% margin. To keep a 20% margin, divide cost by 0.8.
Does rounding to ₹99 cut my margin?
Not here. The tool always rounds up, so the margin at the rounded price is the same as your target or a little above it.
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