Set a selling price from cost using either a markup on cost or a target gross margin on sales. A 50% markup does not mean a 50% margin: cost 100 with 50% markup sells for 150, leaving a margin of 33.33%. The calculator shows both percentages so you can check which basis your price uses.
lightbulb When to use this tool
- check_circle Translate a supplier cost into a selling price using a chosen markup or gross-margin target.
- check_circle Check whether a pricing instruction refers to markup on cost or margin on revenue before preparing a quote.
Inputs and results
Input: Positive unit cost, quantity, calculation mode and a positive percentage. Target margin must be below 100%.
Output: Selling price per unit, profit per unit, markup, gross margin and quantity totals.
How it works
Enter the cost of one unit and the quantity for the scenario.
Choose Markup when the percentage is applied to cost, or Margin when the percentage is the share of selling price left after the entered cost.
Enter the percentage and calculate. Markup price = cost × (1 + markup ÷ 100); target-margin price = cost ÷ (1 − margin ÷ 100).
Review the resulting margin and markup together, then check quantity totals and any costs excluded from your input.
Examples
science 50% markup produces 33.33% margin
For unit cost 100, choose Markup and enter 50%. Selling price is 150 and gross profit is 50 per unit. Margin is 50 ÷ 150 × 100 = 33.33%. For quantity 10, sales total 1,500 and gross profit totals 500.
science 20% target margin requires 25% markup
For unit cost 80, choose Margin and enter 20%. Selling price is 80 ÷ 0.8 = 100. Profit is 20 per unit and markup is 20 ÷ 80 × 100 = 25%.
Limitations
Only the entered cost is included. Shipping, fees, tax, overhead and returns are not automatically added. Margin uses selling price as its denominator; markup uses cost. A 100% target margin has no finite selling price for positive cost. Monetary outputs use INR (₹), with no currency conversion.
Frequently Asked Questions
How do I convert markup to margin? expand_more
How do I convert margin to markup? expand_more
Why is a 100% markup possible but a 100% margin is not? expand_more
Does the calculated profit include tax and overhead? expand_more
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