Enable Strategy Lab
Target Margin Calculator
The one number that covers your overheads and hits your profit goal.
Enter your overheads and target net profit as a percent of revenue (or a dollar figure) and find your Target Gross Margin - the margin every sale needs to carry.
Included in All Access, or unlock it on its own.
Who it’s for
- Not sure what you should actually be charging?
Start here first: free Academy course
The Margin That Pays For Everything
Most businesses set prices without ever calculating the one number that actually has to be hit for overheads to get paid and profit to happen on purpose. Two percentages, added together, give you that number - and once you know it, every price decision gets easier and safer. Skip it and profit stays an accident: sometimes it shows up, sometimes it doesn't, and you never really know why.
- 1.Where Margin Actually Comes FromMost business owners pick a margin because it "feels about right." It should be a calculation, not a feeling.
- 2.Two Percentages, Added TogetherThe whole calculation, in one line: overhead share plus profit share equals your Target Gross Margin.
- 3.Margin Isn't the Same as MarkupThe single most common pricing mistake - and why it quietly shortchanges your profit every time.
- 4.Find Your Two NumbersWrite down a first draft of your overhead share and profit goal - TGM Calculator will use these as your starting point.
- 5.Quick CheckA few questions to lock in what you just covered.
- 6.Turn This Into a Real MarginA faster way to find your number than doing the maths by hand.
Questions
What does the Target Margin Calculator do?
Enter your overheads and target net profit as a percent of revenue (or a dollar figure) and find your Target Gross Margin - the margin every sale needs to carry.
How much does the Target Margin Calculator cost?
It's included in All Access along with every other Lab and the full Academy, or you can unlock it on its own. The membership page has the current options.
Is it built for Australian businesses?
Yes. Enable Strategy Lab is built in Queensland for Australian small business owners, using Australian dollars, GST and Australian terms throughout.
Do I need to be good with numbers or strategy?
No. Each Lab walks you through one step at a time in plain English, with examples, and saves your work as you go so you can come back to it.
Is there anything I should read first?
Yes: the free Academy course "The Margin That Pays For Everything" explains the thinking behind this Lab in 6 short lessons.