Fidamen

Markup Calculator

This calculator helps you compute selling price from cost and markup, derive the implied markup from cost and price, and compute gross margin. It supports retail, service, and wholesale pricing decisions and makes the formulas explicit for audit and record-keeping.

Primary intent: determine the right selling price given cost and desired markup. Secondary intent: reconcile pricing decisions with margin targets and verify implied markup from an existing price.

Updated Nov 29, 2025QA PASS — golden 25 / edge 120Run golden-edge-2026-01-23

Governance

Record 4d2b7c438b9d • Reviewed by Fidamen Standards Committee

Use when you know unit cost and the markup percentage you want to apply.

Inputs

Results

Updates as you type

Selling price

$0.00

OutputValueUnit
Selling price$0.00USD
Primary result$0.00

Visualization

Methodology

Markup (%) = (Selling price − Cost) / Cost × 100. This is the percentage added to cost to set the selling price.

Selling price = Cost × (1 + Markup% / 100). Use this when you set a target markup to recover costs and achieve target returns.

Gross margin (%) = (Selling price − Cost) / Selling price × 100. Margin expresses profit as a share of final revenue and differs from markup; both are calculated for clarity and compliance with accounting practices.

F.A.Q.

Which should I use: markup or margin?

Use markup when pricing from cost (how much to add). Use margin when evaluating profitability relative to revenue. Both are valid; businesses commonly price with markup but track margin for profitability.

How should I handle taxes, shipping, or discounts?

Be consistent: if cost excludes tax and shipping, enter price excluding them as well. For final consumer pricing that includes tax or shipping, either add those on top of the calculated selling price or include them in cost/pricing inputs depending on your reporting needs.

How do I validate results for accounting or tax purposes?

Document inputs and rounding rules, keep cost-basis records (invoices, bills of materials), and reconcile calculated margins with accounting reports. For tax-specific guidance on inventory valuation and cost methods, consult official tax guidance relevant to your jurisdiction.

What rounding or precision should I use?

Round selling prices to currency smallest unit (e.g., cents) for retail. For internal analysis, keep two to four decimal places for percentages, then round for reporting. Always record the rounding rule used for audits.

Are there recommended markup ranges?

Recommended markup varies by industry, channel, and product lifecycle. Low-margin, high-volume retail differs from specialized services. Use market research and competitor analysis to set ranges; the SBA provides guidance on pricing strategy and market positioning.

Can this calculator handle bulk discounts or tiered pricing?

This tool provides per-unit price calculations. For tiered or volume pricing, compute per-tier cost and markup or use the calculator repeatedly for each tier. For complex tiered models, export inputs to a spreadsheet or use an advanced pricing tool.

Sources & citations

Further resources

Versioning & Change Control

Audit record (versions, QA runs, reviewer sign-off, and evidence).

Record ID: 4d2b7c438b9d

What changed (latest)

v1.0.0 • 2025-11-29 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Public QA status

PASS — golden 25 + edge 120

Last run: 2026-01-23 • Run: golden-edge-2026-01-23

Engine

v1.0.0

Data

Baseline (no external datasets)

Content

v1.0.0

UI

v1.0.0

Governance

Last updated: Nov 29, 2025

Reviewed by: Fidamen Standards Committee (Review board)

Credentials: Internal QA

Risk level: low

Reviewer profile (entity)

Fidamen Standards Committee

Review board

Internal QA

Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person

Semantic versioning

  • MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
  • MINOR: New features or fields that do not change existing outputs for the same inputs.
  • PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.

Review protocol

  • Verify formulas and unit definitions against primary standards or datasets.
  • Run golden-case regression suite and edge-case suite.
  • Record reviewer sign-off with credentials and scope.
  • Document assumptions, limitations, and jurisdiction applicability.

Assumptions & limitations

  • Uses exact unit definitions from the Fidamen conversion library.
  • Internal calculations use double precision; display rounding follows the unit's configured decimal places.
  • Not a substitute for calibrated instruments in regulated contexts.
  • Jurisdiction-specific rules may require official guidance.

Change log

v1.0.0 • 2025-11-29 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 22c974437560