Work out how much you can spend on a product and still hit your margin across retail, wholesale and distributor channels. Free to use and totally private—your data stays in your browser.
What is a target cost?
Target cost is the maximum amount you can spend on producing or sourcing a product while still hitting your desired profit margin at a given selling price (RRP).
How do I calculate target cost from RRP and margin?
You can calculate target cost by multiplying your RRP by (1 - desired margin). For example, if your RRP is $15 and your target margin is 30%, your target cost would be $10.50.
Why is calculating target cost important?
Knowing your target cost helps you avoid underpricing and ensures your product remains profitable—especially when selling through multiple channels like wholesale or retail.
Can I use this calculator for different pricing channels?
Yes, you can use this tool to calculate target costs for retail, wholesale, or distributor pricing—just enter the intended selling price and desired margin.
Does this tool store or send my data?
No, all calculations are done right in your browser. Nothing is stored or transmitted, so your data stays private and secure.
