Profit margin
See profit, margin, and markup side by side.
Set a selling price using a markup on unit cost.
Set a selling price using a markup on unit cost.
Unit cost: 80; Markup (%): 25.
Selling price: 100 ; Gross profit per unit: 20 .
Divide cost by one minus the desired margin as a decimal. Applying the margin percentage as a markup understates the required price.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Markup adds a percentage of cost to obtain selling price. It is not the same as margin on revenue.
Set a selling price using a markup on unit cost.
| Input | What to enter |
|---|---|
| Unit cost | Enter a number of at least 0 and no more than 1000000000000. |
| Markup (%) | Enter a number of at least 0 and no more than 10000. |
Divide cost by one minus the desired margin as a decimal. Applying the margin percentage as a markup understates the required price.