How to use it
- Use the formula below with your own figures.
The formula
Price = cost × (1 + markup%).
Worked example
A $60 cost with 50% markup sells at $90.
Frequently asked questions
Markup vs margin?
They differ — a 50% markup is a 33% margin.
How to price?
Balance markup with what the market will pay.
Tips
- Know your break-even before scaling spend.
- Separate margin from markup when pricing.
- Discount future cash flows to value projects.
Key terms
- Break-even
- Where revenue covers costs.
- Margin
- Profit as a percent of price.
- NPV
- Discounted value of future cash flows.