Pricing Strategy & Markup
Marketing & GrowthCalculate optimal product selling prices based on Cost of Goods Sold (COGS), target gross profit margins, and cost-plus markup percentages to maximize business profitability.
Selling price · markup 66.7%
About this calculator
Setting the right product price requires distinguishing between margin and markup. Confusing a 50% markup (which yields a 33.3% margin) with a 50% profit margin can severely underprice products and erode business cash flow.
This tool lets you calculate target selling prices from unit cost and desired gross margin, compute gross profit dollars per unit, and benchmark price elasticity.
How It Works & Formula
Selling Price = Unit Cost / (1 - Target Margin %). Markup % = (Selling Price - Unit Cost) / Unit Cost × 100%. Gross Profit ($) = Selling Price - Unit Cost.
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