Use it when
You have an all-in unit cost and a target markup percentage and want the implied selling price, profit per unit and equivalent profit margin.
Pricing and markup tool
Import Markup
Calculator
Convert your landed cost and target markup into a selling price, profit per unit and the equivalent profit margin.
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Markup and margin are related, but they are not the same percentage.
Step 01 / Cost and markup
Price from
a markup target.
Use your total landed or all-in unit cost as the cost base.
Markup vs margin
Two percentages,
two different bases.
Markup measures profit relative to cost. Profit margin measures profit relative to selling price. A 50% markup does not produce a 50% profit margin.
Selling priceCost per unit × (1 + markup rate)
Profit margin(Selling price − cost) ÷ selling price × 100
If marketplace fees or fulfillment costs are not included in your all-in cost, add them before using the result as a pricing target.
When to use this tool
Use it when pricing policy
is markup-based.
Use another tool when
Your business manages pricing by profit margin rather than markup. Use the Target Selling Price Calculator to solve directly for a margin-driven price.
Price from target margin →Quick answers
Import markup
FAQ.
What is the difference between markup and margin?
Markup measures profit relative to cost. Margin measures profit relative to selling price, so the percentages are different even when dollar profit is the same.
What cost should I use as the markup base?
Use the all-in cost relevant to your pricing decision, ideally including landed cost and any fixed per-unit costs that must be recovered through the selling price.
Does a 50% markup equal a 50% margin?
No. A 50% markup on cost produces a margin of about one third of the selling price before any additional percentage fees.