Business
Retail Price From Cost Calculator
Build a retail price from unit cost plus a markup percentage.
Formula
Retail price = cost multiplied by (1 plus markup as a decimal). Markup is profit measured against cost, not against price.
How it works
Enter the cost of one unit and the markup you want to add. This is the simplest way to price when cost is known and the market will bear the result. Always check the final price against competitors before fixing it.
FAQs
Is markup the same as margin?
No. A 50 percent markup on a $40 cost gives $60, which is only a 33 percent margin on the $60 price.
Does this cover overheads?
Only if the markup is large enough. Rent, wages and fees still need to be paid from the gross profit this price creates.
What if the price looks too high?
Either the cost is too high, the markup is ambitious for the market, or the product needs a stronger value story.
Estimates only, not financial advice. Check your figures before making a business decision.