What is the difference between markup and margin?

Markup is the percentage added to cost to arrive at selling price (Profit ÷ Cost). Margin is the percentage of selling price that represents profit (Profit ÷ Selling Price). A 50% markup equals a 33.3% margin.

Comprehensive Pricing Calculator

Product Details

Product Name

Currency

Units/Batch

Raw Materials

Enter what you buy, the total cost, and how much goes into one unit of your product.

Guide & Methodology

About the Product & Service Pricing Calculator

Determine optimal retail and wholesale product pricing by factoring in cost of goods sold (COGS), labor, overheads, desired profit margin, and taxes.

What this calculator does

Calculates wholesale and recommended retail prices (MSRP) based on cost-plus or target-margin models.
Prevents under-pricing by factoring in overhead, packaging, shipping, and distribution markups.
Calculates gross profit, markup percentage, and profit margin per unit.

How it Works & Key Inputs

Step 1

Material & Labor Costs

Enter direct raw materials, components, and labor hours required per unit.

Step 2

Overhead & Shipping

Allocate fixed overheads (utilities, packaging, freight, platform fees).

Step 3

Target Margin

Set your desired gross profit margin percentage.

Core Calculation Parameters

Cost of Goods Sold (COGS)Direct variable manufacturing or purchase costs.

Target Margin (%)Desired profit share of the final selling price.

Formula & Calculation Logic

Mathematical Model

Selling Price = Total Cost / (1 - Target Margin %) | Markup (%) = [(Selling Price - Total Cost) / Total Cost] × 100

Standard pricing and margin equations.

Variables Breakdown

Total CostCOGS + Allocated Overhead

Target MarginProfit / Selling Price

Frequently Asked Questions (FAQ)

Disclaimer: This calculator is provided for educational and illustrative purposes only. Actual financial outcomes may vary based on statutory changes, lender terms, fund fees, and prevailing market dynamics.