What's the difference between cost ratio and margin ratio?

Cost ratio is cost divided by revenue, while margin ratio is profit divided by revenue. They add up to 100%.

How do I calculate selling price for a 30% target margin?

Use selling price = cost ÷ (1 - target margin). If cost is 70 and target margin is 30%, suggested price is 100.

Yes, as long as both revenue and cost use the same tax basis (both VAT-included or both VAT-excluded).

TOOLOG TOOL

Enter revenue and cost to calculate cost ratio, margin ratio, and profit instantly, then estimate the suggested selling price for your target margin.

Finance/Business

Sales amount

Cost amount

Target margin (%) (optional)

-Profit

-Cost ratio

-Margin ratio

-Suggested price (target margin)

Enter sales and cost to calculate cost and margin ratios.

Use this calculator to quickly evaluate profitability and set target-based prices.