Comprehensive Guide
Learn more in our Business & Tax Guide.
How it works
markup calculator — business takes your inputs and produces selling price, profit per unit, implied margin %, revenue per 100 units. Convert cost to selling price with the right markup — the calculator that prevents accidental underpricing. You provide 2 inputs: Cost per unit (currency, in dollars) (default: 25 dollars); Markup percentage (percent, in percent) (default: 50 percent). The calculator returns 4 outputs: Selling price (the primary result); Profit per unit (a secondary output); Implied margin % (a secondary output); Revenue per 100 units (a supplementary figure). Business tax and finance calculations combine multiple moving parts — revenue, expenses, depreciation, tax brackets, and timing — in ways that make back-of-envelope estimates unreliable. This calculator handles the interaction of those variables precisely, so your business decisions rest on real arithmetic. The underlying formula: Selling price = Cost × (1 + Markup%) | Profit per unit = Cost × Markup% | Implied margin = Markup% ÷ (1 + Markup%) With the default values, selling price is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Formula
Selling price = Cost × (1 + Markup%) | Profit per unit = Cost × Markup% | Implied margin = Markup% ÷ (1 + Markup%)
Tips
- Markup and margin are NOT the same thing. 50% markup = 33.3% margin. 100% markup = 50% margin.
- Use the selling price to calculate margin, not cost. Margin = Profit ÷ Selling Price.
- Double-check with the calculator when switching between markup and margin terminology.
- Consider including overhead allocation in your cost base for more accurate pricing.
Frequently asked questions
What is the difference between markup and margin?
Markup is the percentage added to COST to get selling price. Margin is the percentage of SELLING PRICE that is profit. A 50% markup on $25 = $37.50 selling price = 33.3% margin. They describe the same profit from different angles.
How do I convert margin to markup?
Markup = Margin ÷ (1 − Margin). So a 40% margin = 40% ÷ 60% = 66.7% markup. A 60% margin = 60% ÷ 40% = 150% markup.
What markup should I use?
Depends on your industry and costs. Services often use 2–3x cost (100–200% markup). Products use 2–2.5x wholesale cost (100–150% markup). The key is ensuring the implied margin covers overhead and profit targets.