FTF Finance / Business pricing
Pricing, margin & markup
Check an existing price or calculate one from your unit cost and desired margin or markup.
Your pricing scenario
Use one currency throughout. Changing currency does not convert amounts.
Check the margin and markup produced by an existing selling price. Selling below cost is allowed and produces a gross loss.
Your selling price
USD 10.00 per unit
At a unit cost of USD 8.00, this price produces gross profit of USD 2.00 per unit.
Gross profit per unit
USD 2.00
Gross margin
20%
Markup on cost
25%
Margin and markup use different bases
- Gross margin
- Gross profit divided by selling price, multiplied by 100. Your achieved gross margin is 20%.
- Markup
- Gross profit divided by unit cost, multiplied by 100. Your achieved markup is 25%.
Gross profit per unit is selling price minus the entered cost of goods sold. It is not net profit and does not automatically deduct selling expenses, overhead, financing, or taxes.
Per-unit price breakdown
- Selling price
- USD 10.00
- Cost of goods sold
- USD 8.00
- Gross profit / loss
- USD 2.00
Assumptions and limitations
The model covers one product or service unit. Enter its cost of goods sold and its selling price on a consistent basis. Use prices excluding sales tax, and include each cost only once.
Gross profit = selling price − unit cost. Gross margin = gross profit ÷ selling price × 100. Markup = gross profit ÷ unit cost × 100. Percentages with a zero denominator are reported as undefined, not zero.
Target-margin price = cost ÷ (1 − margin ÷ 100). Markup price = cost × (1 + markup ÷ 100). Generated prices are rounded upward to the selected currency minor unit. Exact integer-ratio arithmetic is used for this rounding; achieved percentages are calculated from that rounded price.
Check-price mode accepts zero prices and zero costs, and allows gross losses. Target modes require a positive cost. Target margins must be nonnegative and below 100%; markup targets range from 0% to 10,000%, with at most two decimal places.
Input amounts are limited to 100,000,000 and generated selling prices to 1,000,000,000. Gross profit is not net profit. Overhead, selling expenses, platform fees, taxes, shipping, discounts, returns, and financing are not automatically modeled.
Currency selection does not convert amounts. Inputs remain in page state only and reset on refresh; they are not saved to an account or database. Example figures are illustrative, not recommended prices.
Educational pricing estimate only. Not personalized financial, tax, or accounting advice.