What this calculation means
Markup pricing applies an addition to a declared cost base. The rate convention and the multiplier convention are alternative ways to express the same pricing operation.
Name what the cost base includes. This form does not add other costs, taxes, or fees automatically.
How to use this calculator
Enter the cost base. Enter either Markup rate or Markup factor and leave the other blank; do not enter both.
Formula and variables
Price = Direct cost × (1 + Markup rate ÷ 100), or Direct cost × Markup factor
- Direct costUSD
- Cost base for the declared markup convention.
- Markup rate%
- Markup applied to cost, such as 100 for 100%.
- Markup factorfactor
- Optional alternative. Use this instead of a percentage, such as 2 for 2×.
Dollar amounts display to cents, with exact half-cent values rounded away from zero; intermediate calculations keep full precision.
Understand your result
The answer is the price obtained from the chosen markup convention. A factor of 2 and a rate of 100% both double cost.
Worked example
Cost is $4.50 and markup rate is 100%.
Direct cost: 4.5 USD
Markup rate: 100 %
Markup factor: Left blank (optional)
- A 100% markup is a multiplier of 1 + 1 = 2.
- Multiply $4.50 × 2 = $9.00. Leave the alternative factor field blank.
Example result: $9.00
Frequently asked questions
Does a 100% markup mean a 100% margin?
No. Doubling a positive cost produces a 50% margin on price for that same cost scope. Markup and margin use different denominators.
Can I fill both markup fields?
No. The form rejects a rate and a factor entered together so it cannot silently choose one convention.