Markup formula
Markup % = gross profit / cost x 100. If cost is $100 and markup is 50%, selling price is $150.
Calculate cost, selling price, gross profit, markup, and gross margin. Keep markup and margin separate so your pricing math stays honest.
Markup % = gross profit / cost x 100. If cost is $100 and markup is 50%, selling price is $150.
Gross margin % = gross profit / selling price x 100. If cost is $100 and desired margin is 50%, selling price must be $200.
Confusing margin and markup can underprice albums, floral materials, subcontractors, agency work, or contractor materials.
A photographer outsourcing an album can check whether the album sale covers cost and profit.
A florist can price materials, rentals, and labor without treating a 50% markup as a 50% margin.
After checking profitability, use the Service Quote Calculator to assemble the client-facing total.