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The Product Pricing Markup Calculator helps small businesses, artisans, and resellers set retail prices using cost-plus pricing — calculating the price required to achieve a target profit margin or markup over the cost of goods. Margin and markup are commonly confused: a 40% margin (profit ÷ price) requires a ~67% markup (profit ÷ cost), so picking the wrong method by mistake creates dramatic pricing errors.

공식

C

Item Cost (currency) — Direct cost of materials per unit

O%

Overhead % (%) — Indirect costs allocated as % of item cost

M%

Target Margin (%) — Desired profit as percentage of selling price

MU%

Target Markup (%) — Desired profit as percentage of total cost

단계별 가이드

1. 1Enter the base item cost (raw materials, packaging)
2. 2Choose pricing mode: Margin (% of selling price) or Markup (% over cost)
3. 3Set target margin or markup percentage — typical retail uses 40–60% margin
4. 4Add overhead percentage to allocate fixed costs (rent, utilities) across each unit
5. 5Add per-unit shipping cost if applicable
6. 6Enter monthly fixed costs and expected unit volume for breakeven analysis
7. 7Calculator solves for suggested price, profit per unit, monthly profit, and breakeven volume

풀어진 예시

피해야 할 일반적인 실수

• ✕Confusing margin and markup — a 50% markup yields only 33% margin; never use them interchangeably
• ✕Ignoring overhead when setting margins — fixed costs need to be amortized across each unit to ensure true profitability
• ✕Setting a target margin below 30% for handmade items — once overhead, shipping, and platform fees are deducted, net margin can be near zero
• ✕Forgetting that breakeven assumes constant fixed costs — scaling volume often requires hiring, larger space, or additional tools

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