Business
Selling price from cost and markup percent — plus profit per unit and the equivalent margin, so markup and margin are never confused again.
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Selling price = cost × (1 + markup ÷ 100). Profit per unit = selling price − cost. Margin = profit ÷ selling price × 100 — note the denominator is the price, not the cost, which is why margin and markup are different numbers for the same product.
Cost $40 with a 50% markup: selling price = $40 × 1.50 = $60.00. Profit per unit = $60.00 − $40 = $20.00. Equivalent margin = $20.00 ÷ $60.00 = 33.33%. The same product is "50% markup" and "33.33% margin" at once — both correct, measured against different bases.
Cost here means unit cost (materials, production, or purchase price). It does not include overheads, shipping, payment fees, or tax unless you fold them into the cost input. The page prices one unit; multiply by quantity for a batch. A markup below 0% would mean selling under cost — the page requires zero or above, since pricing under cost is a deliberate loss-leader decision, not a markup calculation.
Markup for setting prices from cost (the usual shop-floor question); margin for reporting profitability (profit as a share of revenue). Convert with margin = markup ÷ (100 + markup) × 100.
No. 50% markup on $40 gives a $60 price and a 33.33% margin. A 50% margin on a $60 price would need a $30 cost. Confusing the two is the most expensive pricing mistake a small business makes.
Work backwards: price = cost ÷ (1 − margin ÷ 100). For a 40% margin on a $40 cost, price = $40 ÷ 0.60 = $66.67.
Added later, on the selling price. Mixing sales tax into cost distorts both markup and margin; keep the price tax-exclusive here and apply tax at checkout.
Yes — luxury and low-cost goods often do. A 200% markup triples the cost: $40 becomes $120, with a 66.67% margin.
No. A discount comes off the selling price after markup. Price first with markup, then apply the markdown to see the final profit.
Results are estimates only and do not constitute professional advice.