Pricing conversations trip up founders because margin and markup are not the same number. Enter your unit cost and selling price — or a target gross margin — and this calculator returns gross profit, margin %, markup % and the correct price, with a live visual comparison.
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Pricing results
Margin and markup calculation results
Metric
Value
Unit costWhat one unit costs you
40.00
Selling price
100.00
Gross profit / unitPrice − cost
60.00
Gross margin% of selling price
60.00%
Markup on cost% added on top of cost
150.00%
Markup − margin gapWhy they are not the same number
90.00%
Margin vs markup, same deal
Gross margin60.00%
Markup on cost150.00%
How it works
Step 1
Pick a mode
Work from a known price, or from a target gross margin you want to hit.
Step 2
Enter your numbers
Provide unit cost plus price (or target margin). Currency-agnostic.
Step 3
Read the results
See gross profit, margin, markup and the gap between them, then export.
Frequently asked questions
What is the difference between margin and markup?
Margin is gross profit as a percentage of selling price. Markup is gross profit as a percentage of cost. The same deal always produces a larger markup number than margin number.
Which one should I use to price a product?
Use margin. Investors, lenders and P&L statements all read gross margin. Pricing by a markup rule feels equivalent but yields a lower margin than you think.
Does this work for services or subscription businesses?
Yes. Enter the delivered cost per unit (per project, per seat, per month) and the price you charge for that same unit.