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Cost Plus Pricing Calculator

Calculate a selling price from unit cost and target markup. Use this as a pricing-planning tool when you know your cost and want to add a markup target.

Enter your numbers

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Result

Selling price
$30.00

Unit cost plus target markup.

Profit per unit
$10.00

Selling price minus unit cost.

Equivalent margin
33.33%

Profit per unit as a percentage of selling price.

How cost plus pricing works

Cost plus pricing starts with unit cost and adds a target markup percentage.

The calculator multiplies cost by one plus the markup rate to calculate selling price.

This is different from the markup calculator: cost plus pricing derives a planned price, while markup analyzes an existing cost and selling price.

Cost plus pricing formula

Selling Price = Unit Cost x (1 + Markup %); Profit Per Unit = Selling Price - Unit Cost

Markup is applied to cost, not selling price. The equivalent margin is shown to help compare the resulting price with margin targets.

  • Unit Cost is the cost basis for one unit, job, or service package.
  • Markup % is the target percentage added on top of cost.
  • Selling Price is the planned price after markup.
  • Profit Per Unit is selling price minus unit cost.

What the Numbers Mean

Unit cost
The cost basis for one item, service unit, job, or package.
Target markup
The percentage added to cost to set the planned selling price.
Selling price
The price produced by applying the markup target to unit cost.
Equivalent margin
The margin implied by the cost-plus price. It is not the same percentage as markup.

Assumptions

  • Unit cost should include the costs you want the markup to cover.
  • The calculator applies markup to cost, not to revenue.
  • Taxes, shipping, platform fees, discounts, and commissions are excluded unless included in cost or handled separately.
  • Demand, competitor pricing, and willingness to pay are not modeled.
  • Cost plus pricing is a planning shortcut, not a complete pricing strategy.

Worked Examples

$20 cost with 50% markup

Input
$20 unit cost, 50% target markup
Formula
$20 x (1 + 0.50)
Output
$30 selling price, $10 profit per unit, 33.33% margin

A 50% markup on cost produces a 33.33% margin on selling price.

$75 service cost with 40% markup

Input
$75 unit cost, 40% target markup
Formula
$75 x (1 + 0.40)
Output
$105 selling price, $30 profit per unit, 28.57% margin

The markup target sets price from cost, then margin shows the result as a share of price.

$12.50 product cost with 80% markup

Input
$12.50 unit cost, 80% target markup
Formula
$12.50 x (1 + 0.80)
Output
$22.50 selling price, $10 profit per unit, 44.44% margin

Higher markup increases price and profit per unit, but the equivalent margin remains lower than markup.

$100 cost with 25% markup

Input
$100 unit cost, 25% target markup
Formula
$100 x (1 + 0.25)
Output
$125 selling price, $25 profit per unit, 20% margin

A 25% markup produces a 20% margin because margin divides by selling price.

Frequently Asked Questions

How do I calculate cost plus pricing?

Multiply unit cost by one plus the markup percentage. For a 50% markup, multiply cost by 1.5.

Is cost plus pricing the same as markup?

Cost plus pricing uses a target markup to set a price. The markup calculator analyzes a price that already exists.

Does markup equal margin?

No. Markup divides profit by cost. Margin divides profit by selling price.

What cost should I enter?

Enter the cost basis you want to mark up, such as direct product cost, landed cost, job cost, or service delivery cost.

Does this account for fixed costs?

No. Use the break-even calculator when fixed costs and required sales volume matter.

When should cost plus pricing not be used alone?

Do not rely on it alone when market demand, competitor pricing, customer value, discounts, or channel fees drive the real price.

Related Calculators

Continue with the closest next calculation instead of starting from a generic directory.

Markup calculatorAnalyze markup on an existing cost and selling price.Profit margin calculatorCheck the margin percentage implied by your price.Gross profit calculatorEstimate gross profit dollars from revenue and cost.Break-even calculatorEstimate how many units must sell at the planned price.Price per unit calculatorNormalize total cost or total price before setting markup.Commission calculatorEstimate sales payouts that may need to be included in cost.

Disclaimer

This calculator provides a simplified pricing estimate and does not replace accounting, tax, market research, or financial advice.