Costing worked example

Markup at 52% markup: a worked example

What does the result look like when markup reaches 52%? The full calculation is worked below with real intermediate numbers. Use when pricing a part from known cost and deciding between markup and margin targets.

The inputs for this scenario

  • Cost: 8.5 $ / unit (unchanged)
  • Markup: 52 % (raised for this scenario; the documented default is 45)
  • Target margin: 30 % (unchanged)
  • Quantity: 2,500 units (unchanged)

Working through the calculation

  • Applying the documented formula (Markup price = cost × (1 + markup)) to the inputs above produces each figure below.
  • At this operating point the engine returns 12.92 $ / unit for markup price, the number this scenario is built around.
  • At this operating point the engine returns 12.14 $ / unit for margin price.
  • At this operating point the engine returns 32,300 $ for markup revenue.
  • At this operating point the engine returns 30,357 $ for margin revenue.

How this compares with the baseline

  • Against the tool's baseline example, where markup sits at 45% and the headline result is 12.33 $ / unit, this scenario comes in 4.83% above the baseline at 12.92 $ / unit.
  • A figure at this level is achievable when markup is genuinely sustained, not just peaked for a shift. It treats cost as a single fixed number per unit, so it does not account for volume cost breaks, scrap, or overhead allocation that can shift true cost on larger runs.

Results at a glance

  • Markup price: 12.92 $ / unit (headline result)
  • Margin price: 12.14 $ / unit
  • Markup revenue: 32,300 $
  • Margin revenue: 30,357 $

Run it with your numbers

  • Every input above is editable in the live Markup calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.