Currency:
Enter your cost and desired margin to calculate the selling price you need to charge.
$
%
Selling Price
—
Revenue per unit
Cost
—
Per unit
Gross Profit
—
Price − Cost
Margin %
—
Profit ÷ Revenue
Markup %
—
Profit ÷ Cost
Pricing Ladder
Required selling price at each margin target, based on your cost
| Margin Target | Markup | Selling Price | Gross Profit |
|---|
Margin vs. Markup — What's the difference?
Profit Margin
Margin = (Price − Cost) / Price × 100
Margin is profit expressed as a percentage of revenue (selling price). It tells you what share of each dollar earned is profit.
Example: Cost $10, Price $20 → Margin 50%
Markup
Markup = (Price − Cost) / Cost × 100
Markup is profit expressed as a percentage of cost. It tells you how much above cost you're pricing the product.
Example: Cost $10, Price $20 → Markup 100%
Key insight: Margin and markup describe the same profit in different ways. A 50% margin is always a 100% markup. Margin % is always lower than markup % for the same product. Retailers often quote margins; manufacturers often quote markups.
| Margin % | Markup % | Price (on $10 cost) |
|---|