Is this margin or markup?

This is margin, which divides gross profit by selling price. Markup divides profit by cost, so the percentages differ.

Can the result be negative?

Yes. When product cost exceeds selling price, gross profit and margin are negative; the target price still uses the entered cost.

Enter the net selling price after discounts and rebates. Use the same product and gallon basis as the cost sheet.

A 100% target leaves no share of selling price to cover positive product cost. This price calculation requires a target below 100%.

Paint, Resin & Polymer Compounding calculator

Check whether your paint formula meets its gross-margin target. Enter net selling price, complete cost of goods per saleable gallon and your target.

Calculate gross margin and the price needed to meet your target from net selling price and complete product cost per gallon.

Net Selling Price: Net invoice price per saleable US gallon after discounts.
Cost of Goods per Gallon: Approved cost sheet including materials, conversion, packaging and manufacturing overhead.
Target Gross Margin: Your approved gross profit target as a percentage of sales.

Best suited to paint price review, resin formula cost update.
Input ceilings are computational safeguards, not plant benchmarks. Excludes selling expenses, financing and income taxes. A price change does not predict customer demand.

The producer price index for plastic resins and materials stands at 280.569 (BLS, Aug 2026), up 6.6% from a year earlier. Quotes priced off last quarter's material cost miss this move.
Industrial electricity averages 9.77 cents per kWh across the U.S. (EIA, Jul 2026), up 4.7% from a year earlier. Energy-intensive steps carry this directly into unit cost.
The producer price index for industrial chemicals stands at 336.006 (BLS, Aug 2026), up 13.3% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The U.S. has 14,543 chemical manufacturing establishments employing about 911,245 workers (Census County Business Patterns, 2023).

Is this margin or markup? This is margin, which divides gross profit by selling price. Markup divides profit by cost, so the percentages differ.
Can the result be negative? Yes. When product cost exceeds selling price, gross profit and margin are negative; the target price still uses the entered cost.
Should I enter the list price? Enter the net selling price after discounts and rebates. Use the same product and gallon basis as the cost sheet.
Why must the target be below 100%? A 100% target leaves no share of selling price to cover positive product cost. This price calculation requires a target below 100%.

Last reviewed 2026-10-01.