{{ summaryTitle }}
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{{ modeLabel }} {{ displayPercent(calculation.netMarkupPct) }} net markup {{ displayMoney(calculation.netProfit) }} per unit {{ displayMoney(calculation.totalNetProfit) }} total profit {{ warnings.length }} pricing note(s)
Choose whether the price is already known or should be generated from a target percentage.
Enter the cost basis for one unit before markup, such as 50.00.
{{ currencySymbol }}
Enter the price charged to the customer, such as 80.00.
{{ currencySymbol }}
Enter the desired markup over all-in cost, for example 60 for 60%.
%
Enter the desired profit share of the selling price, capped below 100%.
%
Use whole units for total profit checks; decimals round to the nearest unit with a minimum of 1.
units
Pick the symbol to use in summary, table, chart, and JSON exports.
Leave 0 for a pure cost-versus-price markup calculation.
{{ currencySymbol }}
Use 0 when the selling channel has no fixed per-unit fee.
{{ currencySymbol }}
Enter 0-95; the fee is subtracted from realized price before net profit is calculated.
%
Use 0 for no planned markdown, or enter the expected discount percent.
%
Used only for guidance and comparison rows; 30 is a common starting benchmark.
%
Keep 0.01 for exact cents, or round up to retail-friendly endings.
Metric Value What it tells you Copy
{{ row.metric }} {{ row.value }} {{ row.note }}
Priority Signal Action Reason Copy
{{ row.priority }} {{ row.signal }} {{ row.action }} {{ row.reason }}
Scenario List price Net markup Net margin Total net profit Copy
{{ row.scenario }} {{ row.listPrice }} {{ row.netMarkup }} {{ row.netMargin }} {{ row.totalProfit }} 
{{ jsonOutput }}
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Markup and margin both describe profit, but they answer different pricing questions. Markup measures profit against cost, while margin measures profit against selling price.

The difference matters because the same profit dollars produce a bigger markup percentage than margin percentage. A price that looks fine under markup can miss a margin target once channel fees, planned discounts, or per-unit adders are included.

Two bars comparing markup measured against cost and margin measured against selling price.

Markup review is useful when quoting products, checking retail prices, setting service rates, or testing whether a marketplace fee and discount buffer still leave enough net profit.

Gross profit is not net profit. Freight, packaging, payment fees, platform commissions, labor, returns, and overhead may still need separate review after the unit-level pricing check.

Technical Details:

The calculation separates direct unit cost from all-in unit cost. Direct cost drives gross profit, gross markup, and gross margin. All-in unit cost adds extra per-unit costs and fixed per-unit fees, then selling fee and discount settings affect realized price and net profit.

Target modes reverse the pricing problem. Target markup finds the list price required to produce a selected markup over all-in cost after variable selling fees and discount buffer. Target margin finds the list price required to keep net profit as a selected share of realized selling price.

Formula Core

Markup and margin use the same profit dollars but different denominators.

Markup = ProfitCost × 100
Margin = ProfitSelling price × 100
Term How it is calculated Why it matters
Realized price List price after planned discount buffer Used for margin and selling fee math.
All-in unit cost Unit cost plus extra cost per unit plus fixed fee per unit Used for net markup and net profit.
Selling fee Realized price multiplied by selling fee rate Reduces net profit after the customer-facing price is set.
Net profit per unit Realized price minus all-in unit cost minus selling fee Base amount for total net profit across quantity.

A $40 unit cost sold for $60 gives $20 profit. The Gross markup and Net markup are 50.00%, while Gross margin and Net margin are 33.33%. The percentages differ because cost is smaller than selling price.

Mode or setting Behavior Boundary
Analyze selling price Uses the entered selling price as the list price Can show negative net profit if price is below break-even.
Price by target markup Solves a list price from all-in cost, target markup, fee rate, and discount buffer Target markup is allowed from 0% to 1000%.
Price by target margin Solves a list price from all-in cost, target margin, fee rate, and discount buffer Target margin is capped below 100%; fee rate plus margin must leave a positive denominator.
Price rounding Target modes round generated list prices up to cents, 0.05, 0.50, .99 endings, or whole units Rounding can move the final margin slightly above target.

Everyday Use & Decision Guide:

Use Analyze selling price when you already know the shelf price or quote. Use Price by target markup when your workflow marks up cost. Use Price by target margin when the business judges prices by profit as a share of selling price.

Enter the cost that belongs to one unit. Add advanced costs when they really happen per sale: packaging, inbound freight, marketplace fixed fees, payment fees, platform rates, and planned markdowns.

  • Read Net profit per unit before trusting a healthy gross markup.
  • Use Total net profit when quantity is part of the decision.
  • Check Pricing Guidance when net margin falls below the margin floor.
  • Use the Markup-Margin Curve when people are comparing markup and margin percentages.
  • Use Price Scenario Table to compare current price, break-even floor, margin floor, 100% markup price, and a 10% price cut.

Do not compare markup targets and margin targets as if they were interchangeable. A 40% margin requires a higher price than a 40% markup when cost is positive.

Step-by-Step Guide:

  1. Choose Calculation mode. The visible price input changes depending on whether you analyze a known price or solve a target price.
  2. Enter Unit cost. In Analyze mode, enter Selling price; in target modes, enter Target markup or Target margin.
  3. Enter Quantity when total profit matters. Quantity changes Total net profit but not markup or margin percentages.
  4. Open Advanced for currency display, extra cost per unit, fixed fee per unit, selling fee rate, planned discount buffer, margin floor, and price rounding.
  5. Read Markup Snapshot for List price, Realized price, All-in unit cost, Selling fee, Net profit per unit, Net markup, Net margin, and Total net profit.
  6. If the summary shows No viable price or a warning says the selected price is below break-even, lower fee rate or target margin, raise list price, or reduce all-in cost.

Interpreting Results:

Net markup tells how much net profit remains compared with all-in cost. Net margin tells how much of realized selling price remains as net profit. Use the one your pricing policy expects, but read both before quoting.

Realized price is the price after the planned discount buffer. A list price can look high while realized price, selling fee, and all-in cost leave a weak Net profit per unit.

A positive unit result does not prove the business is profitable after overhead, returns, taxes, or customer acquisition costs. Treat the snapshot as a unit-level pricing check.

Worked Examples:

Known selling price. A $40 unit cost and $60 selling price produce $20 Gross profit per unit. The Gross markup is 50.00%, Gross margin is 33.33%, and 12 units produce $240.00 Total net profit when no advanced fees or discounts are entered.

Target margin with fees. In target margin mode, $50 unit cost, $4 extra cost, $1.50 fixed fee, 8% selling fee, 10% discount buffer, 35% target margin, and .99 rounding generate a $108.99 List price. Realized price is $98.09, Net margin is 35.42%, and 25 units produce $868.59 Total net profit.

Not viable target. A 70% selling fee rate plus a 35% target margin leaves no positive denominator for target margin pricing. The summary shows No viable price, so the corrective path is to lower the fee rate, lower the target margin, or change the cost structure.

FAQ:

Which should I use, markup or margin?

Use the measure your pricing process expects. Purchasing and retail workflows often use markup; financial reporting and profitability targets often use margin.

Why is margin lower than markup for the same sale?

Markup divides profit by cost, while margin divides profit by selling price. Selling price includes both cost and profit, so the denominator is larger.

Why did target margin return no viable price?

Target margin pricing needs fee rate plus target margin to stay below 100%. If they reach or exceed 100%, no positive list price can recover cost under that setup.

Does price rounding change the target?

Target modes round the generated list price up. That can make Net margin or Net markup slightly higher than the entered target.

Glossary:

Markup
Profit measured as a percentage of cost.
Margin
Profit measured as a percentage of selling price.
Realized price
List price after planned discount buffer.
All-in unit cost
Direct unit cost plus optional extra cost and fixed fee per unit.
Net profit per unit
Realized price minus all-in unit cost and selling fee.

References: