Target Margin & Pricing Planner methodology

P = C ÷ (1 − m)

G = P − C

M = G ÷ P

k = G ÷ C

Pₙ = P × (1 + g)

k = M ÷ (1 − M)

M = k ÷ (1 + k)

P = C × (1 + k)

F = D + A + N

Rᵣ = Pₙ ÷ (1 + g)

Cᵣ = Cₙ ÷ (1 + g)

Gᵣ = Rᵣ − Cᵣ

Mᵣ = Gᵣ ÷ Rᵣ

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Rates, margins, utilisation and buffers are entered as percentages and converted to decimal values for calculation.

• Recalculate margin from the resulting price; it should equal the target before display rounding.
• A zero margin returns the ex-indirect tax cost. A target approaching 100% makes the required price rise sharply, so the planner constrains invalid boundary values.
• Changing the indirect tax treatment changes the tax-inclusive display, not the underlying ex-indirect tax gross profit.
• The supporting conversion, cost-plus and price-floor modules reconcile to the same margin and markup definitions.
• The registered fixture removes indirect tax from both retained revenue and eligible credited cost; the unregistered cash fixture retains both indirect tax-inclusive cash amounts.
• An input-credit selection without the registered taxable-sale scenario fails closed.

• Unit cost and target margin are user-supplied planning assumptions, not industry benchmarks.
• The indirect tax rate is an editable user assumption. Confirm the applicable rate, taxability, registration and credit treatment for the relevant jurisdiction.
• Price, cost, margin and markup are calculated values derived from those inputs.
• The registered/unregistered indirect tax module is a user-selected arithmetic scenario; it does not determine registration, taxability or input-credit eligibility.

This planner has no current policy-data dependency. Its commercial assumptions are user supplied. Registered family-level regression suites exercise the shared business-logic engine and worked-result reconciliation.

• The model does not decide what customers will pay or whether a chosen margin is commercially suitable.
• It does not model income tax, cash timing, discounts, mixed supplies, indirect tax-free or input-taxed sales, or allocation of shared overhead unless the user includes those amounts in cost.

This is educational decision support, not tax, accounting, legal or financial advice. Check the treatment of your actual transactions under the rules that apply to your business and seek qualified advice where appropriate.

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this planner. Commercial inputs remain user-supplied because they vary by business and contract.

1. 2026-07-31: Initial public release of the planner and methodology after pre-launch calculation, content, source and interaction review.