Markup & margin pricing
Compare markup on cost with the selling price needed for a target gross margin.
Your starting point
LOCAL · PRIVATESample values are filled in. Change them to make this your own.
A little more clarity
RESULTYour result will appear here.
Run the sample to see how it works.Use this tool
- Enter the cost of one unit.
- Set a markup percentage and a separate target gross margin.
- Compare the two selling prices; these are alternative pricing methods.
Reading your result
Markup divides profit by cost; gross margin divides profit by selling price. The two percentages generally produce different prices.
How this works
Markup price = cost × (1 + markup). Margin price = cost ÷ (1 − margin).
Use the units shown beside each field. For monetary amounts, use one currency throughout; calculations do not convert currencies. Results normally display up to two decimal places. Nonzero values below 0.01 use up to six significant digits; values below 0.000001 use scientific notation (for example, 1E-7 means 0.0000001). Rankings use unrounded values, so displayed scores can look equal without being tied. CSV downloads retain numeric precision. Monetary rounding uses half-away-from-zero. Inputs or results beyond supported precision are rejected.
Assumptions & limits
Gross margin excludes overhead and tax. A margin of 100% cannot be reached with a positive cost.
Required numeric fields reject blank, malformed and out-of-range values; negative values are allowed only for inventory position. Whole quantities are validated where units must be indivisible.
Results are planning aids based on the values you enter. Check important decisions and documents before using or sharing them.
