Markup and margin are not the same number
Cost-plus pricing means starting from your unit cost and adding a target profit. The one thing that trips people up is the difference between markup and margin. Markup is measured against cost; margin is measured against the selling price. Put the same percentage into each and you get different prices: at a $10 cost, a 50% markup gives a $15 price, while a 50% margin requires a $20 price.
That is why this calculator asks which basis your target uses, then always reports both the markup and the margin for the price it produces. When a supplier or a buyer says "30% margin", the two of you may be describing different numbers, so it helps to put both on the table.
Prices here are pre-tax. In the US, sales tax is normally added at checkout rather than built into the shelf price, and the rate depends on state and local jurisdiction, so it is not included. Total revenue and total gross profit are calculated from the rounded per-unit figures shown above them, so the numbers reconcile if you multiply them yourself.
Written as of September 2026. If your unit cost excludes selling fees, shipping or advertising, real profit lands lower than shown. Use this for planning and confirm pricing and tax treatment with your accountant.
Frequently asked questions
On a $10 cost, a 50% markup prices at $15 and a 50% margin prices at $20. Converted, a 50% markup is about a 33.3% margin. The higher the target, the wider the two bases diverge.
At minimum your purchase or production cost plus anything that recurs with each unit sold, such as packaging and shipping. If you also want selling fees included, a minimum-price calculator that takes a fee rate separately gives a cleaner answer.