Cost from Margin Calculator
The most you can pay and still hit your margin.
Maximum unit cost
$22.00
landed, including freight and packaging
Compare supplier quotes on landed cost, not the quoted unit price. Freight and duty routinely reverse which supplier is cheaper.
How the Cost from Margin Calculator works
Running the margin formula backwards gives you a number worth having before any supplier conversation: the most you can pay per unit and still hit your target at the price the market will bear. Above it, the deal does not work regardless of how good the terms sound.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I calculate maximum cost from margin?
Cost = price × (1 − margin). To sell at £40 with a 45% margin, the unit cost cannot exceed £22. That is your ceiling, and it should include freight and packaging, not just the quoted unit price.
Why is this useful for negotiating?
Because it converts a vague desire for a better price into a specific target. Walking into a supplier conversation knowing you need £22 landed rather than £26 changes the discussion entirely, and tells you when to walk away.
Should the ceiling include shipping and duty?
Yes. Compare landed cost, not quoted unit price. A supplier that is 10% cheaper per unit but ships from further away with higher duty can easily be the more expensive option once everything is counted.
What if no supplier can meet my target cost?
Then either the target margin or the selling price is wrong for this product. Sometimes the answer is a different product. Discovering that before placing a first order is considerably cheaper than after.