Owner Track worksheet
Cost-Plus Pricing: Formula, Examples & How to Price a Product
The formula
Price = Cost × (1 + Markup %)
Price = Cost ÷ (1 − Margin %)
Illustrative example
Examples use made-up numbers. Education only, not tax, legal or investment advice.
| Cost | Target | Formula | Price | Gross Profit | Resulting Margin |
|---|---|---|---|---|---|
| $100.00 | 50% markup | $100 × 1.50 | $150.00 | $50.00 | 33.3% |
| $100.00 | 40% margin | $100 ÷ 0.60 | $166.67 | $66.67 | 40.0% |
Your numbers
| Cost | Target | Formula | Price | Gross Profit | Resulting Margin |
|---|---|---|---|---|---|
Estimates depend on your inputs.