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Markup Calculator

Calculate profit per unit plus markup and margin percentages from cost and selling price.

Results

Profit per unit
$30 USD
Markup
60.00%
Margin
37.50%

How to use this calculator

  1. Enter unit cost and selling price.
  2. We calculate profit per unit, markup percentage, and margin percentage.
  3. Use the numbers to adjust pricing or compare profitability across items.

Inputs explained

Cost per unit
All-in cost to produce or acquire one unit.
Selling price
Price charged to customers for one unit.

How it works

Profit = selling price − cost.

Markup % = profit ÷ cost. Margin % = profit ÷ selling price.

Formula

Profit = Price − Cost\nMarkup = Profit / Cost\nMargin = Profit / Price

When to use it

  • Comparing markup and margin to ensure pricing meets targets.
  • Testing price increases or cost changes to see margin impact.
  • Explaining markup vs margin differences to sales or finance teams.

Tips & cautions

  • Margin is generally the metric finance teams track; markup is helpful for quick pricing rules.
  • If margins are thin, explore cost reductions or price adjustments to hit targets.
  • Round prices thoughtfully—psychological pricing can change realized margin slightly.
  • Does not include overhead, shipping, or platform fees unless you add them to cost.
  • Single-unit focus; bulk discounts or tiered pricing aren’t modeled.
  • Taxes and payment processing fees are not included unless rolled into cost.

Worked examples

$50 cost, $80 price

  • Profit = $30
  • Markup = 60%
  • Margin ≈ 37.5%

$30 cost, $45 price

  • Profit = $15
  • Markup = 50%
  • Margin ≈ 33.3%

Deep dive

See profit per unit plus markup and margin percentages by entering cost and selling price.

Ideal for quick pricing checks and educating teams on the difference between markup and margin.

FAQs

Why do markup and margin differ?
Markup compares profit to cost; margin compares profit to selling price. Margin is always lower than markup for the same numbers.
Which should I use?
Retail often prices in markup, while finance teams track margins for profitability and reporting.

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