Why are the two prices different?

Markup is a share of cost and margin is a share of price. At the same percentage the margin price is higher, because its percentage is taken from a larger base. The cross rows show that difference.

Which pricing method should I use?

Use the target margin method when a margin policy or quote review sets the floor, because it prices the margin kept. Markup suits quick estimating when cost is stable and the market accepts the result.

What does the verdict compare?

It compares the margin the markup price actually delivers with your target margin. When the markup price falls short, the warning names the price difference to the margin price so the gap can be closed.

Does the calculator handle volume discounts?

No. It treats unit cost as fixed across the quantity. If a larger run lowers cost, rerun with the lower cost and compare the prices; revenue rows scale with quantity.

Costing calculator

Markup Calculator

Price a part two ways: a markup on cost and a price that hits a target margin. Enter cost, markup, target margin and quantity; the rows show each price, the revenue it earns and the margin each one delivers.

What this calculator does

Markup price and target-margin price from cost, with revenue and the margin each delivers.

Formula used

Markup price = unit cost × (1 + markup ÷ 100)
Price at target margin = unit cost ÷ (1 − target margin ÷ 100)
Margin at markup price = (markup price − unit cost) ÷ markup price × 100
Markup at target margin price = (margin price − unit cost) ÷ unit cost × 100
Revenue at each price = that price × quantity

Inputs explained

Unit Cost: Landed cost per unit from the job cost sheet.
Markup: Markup on cost the shop wants on this work.
Target Margin: Margin share the pricing policy requires on the sale.
Quantity: Units in the run or order being priced.

How to use the result

Best suited to pricing a repeat job from cost, comparing markup and margin targets, sizing revenue on a quoted run.
Cost is a single figure; volume breaks and overhead shifts are outside it. Prices are before tax and freight unless those costs sit in unit cost.

Current U.S. benchmarks

U.S. manufacturing runs at 75.7% of capacity (Federal Reserve, Aug 2026). New factory orders are up 8.5% year over year (Census).

Common questions

Why are the two prices different? Markup is a share of cost and margin is a share of price. At the same percentage the margin price is higher, because its percentage is taken from a larger base. The cross rows show that difference.
Which pricing method should I use? Use the target margin method when a margin policy or quote review sets the floor, because it prices the margin kept. Markup suits quick estimating when cost is stable and the market accepts the result.
What does the verdict compare? It compares the margin the markup price actually delivers with your target margin. When the markup price falls short, the warning names the price difference to the margin price so the gap can be closed.
Does the calculator handle volume discounts? No. It treats unit cost as fixed across the quantity. If a larger run lowers cost, rerun with the lower cost and compare the prices; revenue rows scale with quantity.

Last reviewed 2026-10-01.