Pricing Strategy & Cost-Plus Calculations

Free Markup Calculator

Calculate cost markups, recommended client selling prices, gross profit dollars, and resulting profit margins. Convert cost-plus formulas into clear billing rates.

Cost Markup Calculator

Calculate Selling Price, Dollar Profit & Resulting Margin
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Quick Markup Presets:
Understanding Markup vs. Margin

Markup is the percentage added to your cost to arrive at a selling price.Margin is the percentage of the final selling price that is profit. A 100% markup results in a 50% profit margin.

Pricing Breakdown

Original Cost:$120.00
Markup (40%):+$48.00
Recommended Selling Price

Invoice this price to client

$168.00
Gross Profit:$48.00
Resulting Profit Margin:28.6%

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Transfer the final calculated selling price directly into Invoza's invoice generator (cost and markup percentages remain private).

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Cost-Plus Pricing

Start with your true wholesale or internal labor cost, then add a target markup percentage to guarantee positive cash flow on every line item.

Markup vs. Margin Table

• 25% Markup = 20.0% Margin
• 33% Markup = 25.0% Margin
• 50% Markup = 33.3% Margin
• 100% Markup = 50.0% Margin

Covering Overhead

Remember that gross markup must cover non-billable operating overhead, software, taxes, and insurance before net company profit is realized.

Frequently Asked Questions

What is the formula for markup?

The formula for markup is: Markup Percentage = ((Selling Price - Cost) / Cost) × 100. To find the selling price from cost and markup: Selling Price = Cost × (1 + Markup / 100).

How is markup different from profit margin?

Markup is calculated as a percentage of your cost, whereas profit margin is calculated as a percentage of the final selling price. For example, if an item costs $50 and sells for $100, the markup is 100% ($50 / $50), but the gross profit margin is 50% ($50 / $100).

What is a standard markup percentage?

Standard markup varies widely by industry: retail goods typically carry a 50% to 100% markup (keystone pricing); construction materials and trade subcontractors generally mark up parts 15% to 35%; professional consulting services often mark up pass-through expenses by 10% to 20%.

Can I convert markup directly into profit margin?

Yes. The conversion formula is: Margin % = Markup % / (1 + Markup %) or visit Invoza's dedicated Margin Calculator to model target margins.