Add a markup percentage to your unit cost to compute a selling price and its margin.
Unit Cost (USD) — Cost per unit USD. Includes direct expenses; verify with invoices for accuracy. Example: 25 USD.
Percentage added to cost. Unit: %.
Selling Price
$35.00
Selling Price — Monetary amount USD. Represents cash flow, cost, or value; compare across scenarios.
Markup Amount
$10.00
Markup Amount — Monetary amount USD. Represents cash flow, cost, or value; compare across scenarios.
Margin
28.6%
Margin — Percentage %. Above 0 increases with input; compare to benchmarks or goals.
What this means
A 40% markup on a $25 cost adds $10 and prices the item at $35. Because margin is expressed against price, a 40% markup equals about a 28.6% margin.
Cost-plus pricing sets price as your cost plus a markup. It is simple and guarantees that each sale covers the cost component you start from.
Formula
price = cost × (1 + markup ÷ 100) | margin = markup amount ÷ price
Worked examples
FAQ
Markup vs margin — what is the difference?
Markup is added on top of cost; margin is the percentage of the selling price that is profit. Same numbers, different denominators.
Is cost-plus pricing always wise?
It guarantees cost coverage but ignores what the market will bear — pair it with competitor pricing checks.