Markup
Markup measures gross profit against cost: (selling price − cost) ÷ cost × 100.
Business pricing calculator
Markup Calculator
Calculate a selling price from cost and markup, then see gross profit, equivalent margin, fees, discounts, break-even price, and totals for multiple units. Use it to test product, wholesale, retail, service, and project pricing before quoting a customer.
Price an item using markup
Enter your complete unit cost and desired markup. Add transaction fees and a proposed discount to test the real profit before quoting or publishing a price.
Pricing result
Recommended selling price
$84.00
Gross profit / unit
$24.00
Equivalent margin
28.57%
Fees / unit
$0.00
Profit after fees
$24.00
Margin after fees
28.57%
Break-even price
$60.00
For 1 units: $84.00 revenue and $24.00 profit after fees.
Profit margin
Margin measures gross profit against selling price: (selling price − cost) ÷ selling price × 100.
Selling price
Selling price is the amount charged before or after the discount you choose to test.
Markup versus margin: the important difference
Markup and margin describe the same gross profit from different starting points, so their percentages are not interchangeable. If an item costs $60 and sells for $100, gross profit is $40. The markup is 66.67% because $40 is divided by the $60 cost. The margin is 40% because $40 is divided by the $100 selling price. Confusing the two can cause systematic underpricing.
How to set a useful selling price
Start with a complete unit cost, not only the supplier invoice. Include direct labor, materials, packaging, inbound freight, and other variable costs that belong to the item or job. Apply the desired markup, then test payment fees, marketplace fees, and planned discounts. Finally, check profit after fees and the break-even price before publishing the price or sending a quote.
Gross profit is not net business profit
The calculator’s gross profit subtracts the entered unit cost from selling price. Profit after fees also subtracts the entered fixed and percentage transaction fees. Neither figure automatically includes rent, salaries, insurance, taxes, marketing, returns, overhead, or every cost of operating the business. Include relevant costs and verify the final price using your accounting records.
Markup calculator FAQs
What is markup?
Markup is profit expressed as a percentage of cost. A product costing $60 with a 40% markup has a $24 gross profit and an $84 selling price.
Is markup the same as profit margin?
No. Markup divides gross profit by cost, while margin divides gross profit by selling price. A 40% markup on cost equals about a 28.57% gross margin.
What costs should I include?
Include the costs directly associated with delivering one unit, such as materials, wholesale cost, direct labor, packaging, inbound freight, and other variable costs relevant to your business.
Why include fees and discounts?
Marketplace, card, platform, or transaction fees and customer discounts reduce the money retained from a sale. Testing them helps prevent an apparently profitable price from becoming a loss.
Methodology and disclaimer
Numeravo calculates estimates from the values you enter. Results are for business planning and educational use and are not accounting, tax, legal, or financial advice. Confirm costs, fees, taxes, and pricing decisions using current records and qualified professional guidance.
Created and maintained by Numeravo Technologies LLC.