Business
Calculator for Markup
Find selling price from cost and markup percentage, profit for each unit and the equivalent margin. The page dey explain the difference between markup and margin too.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
Price wey you sell am
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Formula
Selling price = cost × (1 + markup ÷ 100). Profit per unit = selling price − cost. Margin = profit ÷ selling price × 100. Check the denominator: na selling price we dey divide by, no be cost. That na why margin and markup differ for the same product.
Example wey show the calculation
Cost na $40 with 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%. So the same product get "50% markup" and "33.33% margin" at once; both correct, but dem dey use different bases.
Where e fit work and limits
Cost here na cost for each unit: materials, production or purchase price. Overheads, shipping, payment fees and tax no dey inside unless you add dem to the cost input. The page dey price one unit; multiply by quantity for a batch. Markup below 0% mean say you sell below cost. This page require zero or above, because selling below cost na deliberate loss-leader choice, no be markup calculation.
Questions wey people dey ask often
Markup or margin: which one I suppose use?
Use markup to set price from cost, as shops usually dey do. Use margin to report profit as share of revenue. To change markup to margin: margin = markup ÷ (100 + markup) × 100.
50% markup na the same as 50% margin?
No. 50% markup on $40 go give price of $60 and margin of 33.33%. To get 50% margin on a $60 price, cost must be $30. Mixing the two fit cause serious pricing loss for small business.
Wetin if na target margin I want instead?
Work am backwards: price = cost ÷ (1 − margin ÷ 100). For 40% margin on cost of $40, price = $40 ÷ 0.60 = $66.67.
Tax suppose dey inside the cost or I go add am later?
Use the same tax basis for cost and price. This example's selling price no include sales tax; whether purchase tax belong inside your cost depend on whether you fit recover am and the local rules. Calculate the sales-tax base and rate wey apply separately.
Markup fit pass 100%?
Yes, luxury goods and goods wey cost little often get am. 200% markup go triple cost: $40 go become $120, with 66.67% margin.
This one cover discounts?
No. Discount dey come off selling price after markup. Set price with markup first, then remove discount to see the final profit.
Other tools wey relate to dis
- Calculator for profit — total profit from units, revenue and costs
- Calculator for gross margin — margin for a whole product line
- Calculator for discount — selling prices after price reduction
Results na estimates; dem no replace advice from qualified professional.