Convert an entered unit cost and markup-on-cost percentage into markup amount, selling price, and equivalent gross margin with visible steps.
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Convert one documented unit cost and entered markup-on-cost percentage into markup amount, selling price, and equivalent gross margin without choosing a price or claiming profitability.
Separate markup on cost from gross margin on selling price.
Enter one consistently defined unit cost and chosen markup, then audit the amount, selling price and denominator conversion.
Can explain why 40% markup produces 28.57% gross margin and does not call the result net profit.
Keep the entered cost basis documented and reproducible.
Confirm whether freight, labor, overhead, fees and returns belong in the selected cost record before entering it.
Does not mix inventory cost, variable cost, contribution margin and full business cost.
Avoid treating unit arithmetic as a pricing or break-even recommendation.
Use the calculator for the two entered values, then assess demand, competitors, taxes, fixed costs, volume, returns and break-even separately.
Does not rely on an invented industry benchmark or “typical” markup label.
Outputs and checklists are planning aids. Review the linked current authorities and the records, terms, instructions, and requirements that apply to your exact situation before a consequential decision.
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The tool multiplies the documented unit cost by the entered markup percentage, then adds that amount to cost. It does not decide which costs belong in the record.
Markup amount = entered unit cost × entered markup % ÷ 100Markup and gross margin describe the same dollar spread with different denominators: markup divides by cost, while gross margin divides by selling price.
Selling price = cost + markup amount; gross margin % = markup amount ÷ selling price × 100A selling-price calculation is not a pricing recommendation or profitability test. Demand, fixed costs, taxes, fees, discounts, returns, inventory treatment and sales volume remain outside the result.
Updated: August 2026
A seller checks the exact arithmetic for one consistently defined unit-cost record.
→ $20 markup amount, $70 selling price, 28.57% equivalent gross margin
A reviewer confirms that a 0% markup leaves selling price equal to the entered cost.
→ $0 markup amount, $18.75 selling price, 0% equivalent gross margin
A bookkeeper first decides whether freight, labor or manufacturing overhead belongs in the documented unit cost, then runs the same two-input arithmetic without treating the output as net profit.
Keep the denominator visible. A 40% markup on cost is 28.57% gross margin on the resulting selling price, not 40% margin.
The tool does not know demand, fixed costs, taxes, fees, returns, discounts or sales volume and never assigns an industry benchmark.
Enter one documented unit cost and one markup-on-cost percentage to audit markup amount, selling price, and the equivalent gross-margin denominator.