Target Cost
Target Cost. Calculate with Target sale price, Target gross margin (%); review the formula, units and worked example.
Values and units
Runs in this browserResult
Set the inputs and run the tool to view the result.
How to use Target Cost
- Review the populated example and the input units, then replace it with your data.
- Calculate with Target sale price, Target gross margin (%); review the formula, units and worked example.
- Run the tool, inspect the result, then copy or download what you need.
Method and scope
price*(1-margin/100)
Formula
price*(1-margin/100)- price
- Target sale price
- margin
- Target gross margin (%)
Numbers retain the tool's existing precision. Keep monetary inputs in the same currency and enter percentages as percentage values.
Estimates depend on the inputs and the stated formula. Confirm contractual costs, carrier rules and applicable taxes separately.
Input example
Target sale price: 120 Target gross margin (%): 25
Expected result: 90 currency
Questions and result checks
How does Target Cost determine the result?
price*(1-margin/100)
Formula
price*(1-margin/100)- price
- Target sale price
- margin
- Target gross margin (%)
Numbers retain the tool's existing precision. Keep monetary inputs in the same currency and enter percentages as percentage values.
What should I check before processing?
Estimates depend on the inputs and the stated formula. Confirm contractual costs, carrier rules and applicable taxes separately.
How can I verify the output?
Use the supplied example as a check, then compare important results with the original source or business document.
Target sale price: 120 Target gross margin (%): 25
Expected result: 90 currency
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