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Markup Calculator

What price does your markup give you?

Markup is the simplest way to set a price: take your cost and add a percentage. Here is the price it gives you, and the margin you actually keep.

Your numbers

Selling price
$14.30
Profit per unit
$7.80
Margin
54.5%
Profit in a month
$624.00

A 120% markup is a 54.5% margin. They are not the same number.

The Products tab in the kit shows markup and margin side by side for every product.

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How the sum works

  1. Selling price = cost times (1 plus the markup).
  2. Profit per unit = selling price minus cost.
  3. Margin = profit divided by selling price.
  4. Profit in a month = profit per unit times units sold.

Questions

What markup gives a 50% margin?

A 100% markup. Doubling your cost means half of the price is cost and half is profit.

Is markup or margin better for setting prices?

Markup is easier to apply: multiply the cost. Margin is better for judging the result, because your fees and overheads are paid out of the selling price. Set with either, then check the margin.

Should every product have the same markup?

Not always. Low-cost items often carry a higher markup because buyers notice the price less, while higher-priced items may need a lower one to stay competitive.

This was one sum

The Back Office Kit runs all of them, for every product, together.

One Excel workbook that prices your products, tracks your stock, logs your orders and builds your invoices and wholesale line sheet. One payment of $19. Download the moment you pay.

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The dashboard tab of the Back Office Kit: revenue, profit, cash, stock value and items to reorder.

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