Pricing Calculator Formula

Understand the math behind the pricing calculator. Each variable explained with a worked example.

Use the Pricing Calculator

Formulas Used

Selling Price

selling_price = cost * (1 + markup_pct / 100)

Profit Per Unit

profit = cost * markup_pct / 100

Resulting Margin

margin_pct = (1 + markup_pct / 100) > 0 ? (markup_pct / 100) / (1 + markup_pct / 100) * 100 : 0

Variables

VariableDescriptionDefault
costCost(USD)75
markup_pctDesired Markup(%)50

How It Works

How to Calculate Selling Price

Formula

Selling Price = Cost x (1 + Markup% / 100) Resulting Margin = Markup% / (100 + Markup%)

Setting the right price is a balance between covering costs, making a profit, and remaining competitive. This calculator helps you find your selling price and see both markup and margin.

Worked Example

A product costs $75 and you want a 50% markup.

cost = 75markup_pct = 50
  1. 01Selling price = $75 x (1 + 50/100) = $75 x 1.50 = $112.50
  2. 02Profit per unit = $112.50 - $75 = $37.50
  3. 03Resulting margin = $37.50 / $112.50 x 100 = 33.33%

Ready to run the numbers?

Open Pricing Calculator