Target Price Calculator

Calculate Target Price



Formula

The formula to calculate the Target Price (TP) is:

\[ TP = \frac{IC}{1 - \frac{TM}{100}} \]

Where:

Definitions

Example

Let's say the Item Cost (IC) is $50 and the Target Margin (TM) is 20%. Using the formula:

\[ TP = \frac{50}{1 - \frac{20}{100}} \]

We get:

\[ TP = \frac{50}{0.8} = 62.50 \]

So, the Target Price is $62.50.