A 50% markup
A 40.00 cost with 50% markup gives a 60.00 selling price. The 20.00 gross profit is 50% of cost and 33.33% of the selling price.
Set a selling price from cost
Whole number from 1 to 1,000,000.
Cost and selling price exclude sales tax. Gross profit does not deduct overhead or tax. Currency labels do not convert values.
Price and margin comparison
Selling price per unit$60.00
Rounded upward to a cent to meet the entered target.
50%Actual markup on cost
33.33%Actual gross margin on price
| Item | Value |
|---|---|
| Unit cost | $40.00 |
| Gross profit per unit | $20.00 |
| Units | 25 |
| Revenue | $1,500.00 |
| Gross profit across units | $500.00 |
A 50% markup on cost produces a 33.33% gross margin. A 50% gross margin requires a 100% markup.
Calculations run in your browser. Inputs are not uploaded or saved by this calculator.
How to use the Markup Calculator
- 01
Enter the complete unit cost you want the price calculation to cover.
- 02
Choose markup on cost or target gross margin on selling price, then enter the percentage. Gross margin targets must be below 100%.
- 03
Enter the whole number of units you plan to sell. Review the rounded price, actual percentages, revenue and gross profit.
Examples
A 50% margin
A 40.00 cost with a 50% gross margin target gives an 80.00 selling price. Profit is 40.00, equivalent to a 100% markup on cost.
Two ways to build a price
Markup mode multiplies cost by one plus the markup percentage divided by 100. Gross-margin mode divides cost by one minus the margin percentage divided by 100. The tool then rounds upward to the next cent so cent rounding does not lower the requested percentage.
Quantity changes the total, not the unit economics
Revenue is the rounded unit selling price multiplied by quantity. Gross profit is that revenue less entered unit cost times quantity. The model does not infer discounts for larger orders, fixed overhead, sales tax, spoilage, shipping or payment fees.
What to know
- Rates are user assumptions, not recommended market prices.
- Quantity is a whole-number scenario and the same cost and price apply to every unit.
Common questions
Why can the actual percentage exceed the target?
Prices are rounded upward to cents. The difference is most visible on very small unit costs.
Can I set a margin of 100%?
No. With positive unit cost, a 100% gross margin would require an unbounded selling price. Markup can exceed 100% because it uses cost as its denominator.
Can I calculate a price for zero cost?
This tool requires a positive unit cost to keep markup defined. Enter a reasonable cost basis for your own scenario.
Does gross profit equal take-home profit?
No. Gross profit here subtracts only the unit costs entered. Operating expenses and taxes require separate treatment.