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Markup → Price

Set a selling price by applying a markup percentage to your cost, and see the resulting profit per unit. The quick way to price inventory to a target margin over cost.

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Worked example

Price: $84.00 · Profit: $24.00

How it’s solved

Worked on the example above, step by step — follow along and you can do it on paper next time, no tool required.

  1. Marking up adds a percent of the cost on top of the cost.
  2. Price = cost × (1 + markup ÷ 100)
    $60.00 × 1.4 = $84.00
  3. Profit per unit = price − cost
    $84.00 − $60.00 = $24.00

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Frequently asked

How is the price calculated?

Price = cost × (1 + markup ÷ 100). A 40% markup on a $60 cost gives an $84 price.

Is markup the same as margin?

No — a 40% markup on cost is not a 40% margin on price. Use the Margin & Markup tool to compare them.

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