Formula used
Recommended price = total per-sale cost divided by one minus your target margin percentage.
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Pricing tool
Profit Margin and Pricing Optimizer for Restaurant
Add your product, fulfillment, and acquisition costs to find the sale price required for the margin you want to protect.
Total cost$20.00
Target margin40%
Markup66.7%
Inputs
Your costs
Use per-sale costs so the price recommendation stays clean.
Your numbers stay in this browser. Free calculator inputs are not stored on our servers.
Recommended sale price
$33.33
At this price, each sale creates $13.33 of profit after covering $20.00 in costs.
Break-even price$20.00
Premium test price$36.67
Price ladder
Minimum floor$20.00
Target margin$33.33
Upside test$36.67
Guide
How to use the margin calculator
Use this before changing a price, launching a promotion, or deciding whether a product can support paid acquisition.
Healthy benchmark
Many consumer products aim for roughly 30-45% gross margin before overhead; software and services often need higher margins because labor, support, and acquisition are not fully captured in COGS.
Common mistakes
- Leaving out fulfillment, payment fees, discounts, returns, or marketplace fees.
- Using gross margin as if it already includes paid acquisition cost.
- Copying competitor pricing without checking your own cost structure.
When this result matters
Use this before changing a price, launching a promotion, or deciding whether a product can support paid acquisition.
The useful output is not just the final number. It is the margin of safety between your current plan and the point where the decision starts taking cash out of the business.
Example operator review
If a product costs $10 to make, $5 to fulfill, and $5 to acquire, a 40% target margin needs a $33.33 sale price. If your current price is below that, the decision is not just a pricing issue; it also affects discounting, ad spend, and runway.
Is the margin calculator free?
Yes. You can use the calculator without an account. Clear Margins Pro is for saving scenario history, exporting CSV notes, and reviewing repeat decisions.
Where are my calculator inputs stored?
Free calculator inputs stay in your browser while you use the page and are not stored on Clear Margins servers.
What should I do after I get a result?
Treat the result as a decision floor, then compare it with the paired risk: pricing with ROAS, discounts with volume, inventory with runway, and hiring with capacity.