Selling price calculator

Frequently asked questions

What is the difference between margin and markup?

Margin is gross profit divided by the selling price, while markup is gross profit divided by cost. A 50% markup on a $10 cost gives a $15 price with a 33% margin — the two percentages describe the same profit from different reference points, so confusing them leads to mispriced products.

Which mode should I use if my company targets gross margin?

Use the margin mode. Finance teams and P&L statements almost always express profitability as a percentage of revenue, so targeting margin keeps pricing consistent with how performance is measured.

Why does this calculator use a single unit cost with no other layers?

The formula isolates the relationship between cost, price, and profit at the unit level. Shipping, platform fees, or taxes would each reduce the effective margin, so those items should be folded into the cost input if you want the result to reflect total landed cost.

If I enter a target markup of 100%, what selling price do I get?

A 100% markup doubles the cost — a $25 cost becomes a $50 selling price with $25 gross profit. That same result represents a 50% gross margin.