Calculate selling price from product cost, desired margin, and overhead. See markup amount, markup percentage, and profit.
Margin is profit as a percentage of selling price, while markup is profit as a percentage of cost. A 50% markup equals approximately a 33% margin.
Add your allocated overhead cost per unit to the direct product cost before calculating the selling price. This ensures your price covers all expenses, not just direct production costs.
Target margins vary by industry: retail typically 25-50%, software 70-90%, food service 60-70%, and manufacturing 25-35%. Consider competitor pricing and customer willingness to pay.