Calculate what selling price to charge to achieve a target gross margin. Enter cost and desired margin % — the formula divides, it does not multiply.
To hit a target margin you divide, you don't multiply. The selling price is cost ÷ (1 − margin), because margin is measured against the selling price you're solving for — not against cost.
The common mistake is cost × (1 + margin), which quietly undershoots the target on every unit. On thin FMCG margins that gap decides whether a line makes money.
Cost ₹80, target margin 25%: selling price = 80 ÷ (1 − 0.25) = 80 ÷ 0.75 = ₹106.67. Doing 80 × 1.25 = ₹100 would leave you at a 20% margin, not 25%.
Because margin is a share of the selling price, not of cost. Adding it to cost applies the percentage to the wrong base and lands you below target. Divide by (1 − margin) instead.
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