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Markup Formula
Calculate how much selling price exceeds cost, expressed as a percentage of cost.
Markup (%) = (Selling price − Cost) ÷ Cost × 100Read formula
Decision guides
Use business metrics in context
Follow a practical path from the business question to the right formula, then use the matching calculator with a clearer understanding of its assumptions.
Guide 1
Pricing and profitability
Build a price from cost, distinguish markup from margin, and check how much revenue remains after direct cost.
Use this guide to
- Set a selling price from a known cost
- Translate markup into the resulting margin
- Use a consistent cost basis across products
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Profit Margin Formula
Calculate the percentage of selling price that remains after subtracting cost.
Profit margin (%) = (Selling price − Cost) ÷ Selling price × 100Read formula
Guide 2
Break-even planning
Connect price, variable cost, contribution, and fixed costs to the sales volume required before profit begins.
Use this guide to
- Separate fixed and variable costs
- Measure contribution per sale
- Stress-test changes in price or cost
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Break-Even Formula
Find the sales volume needed for contribution to cover fixed costs.
Break-even units = Fixed costs ÷ (Selling price per unit − Variable cost per unit)Read formula
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Profit Margin Formula
Calculate the percentage of selling price that remains after subtracting cost.
Profit margin (%) = (Selling price − Cost) ÷ Selling price × 100Read formula
Guide 3
Marketing efficiency
Read campaign revenue efficiency and customer acquisition cost together instead of treating either metric as profit.
Use this guide to
- Keep attribution scope consistent
- Compare acquired-customer value with CAC
- Account for margin before judging ROAS
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ROAS Formula
Measure attributed revenue generated for each dollar of advertising spend.
ROAS = Revenue from ads ÷ Ad spendRead formula
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Customer Acquisition Cost Formula
Calculate the average customer acquisition spend required to acquire one new customer.
CAC = Customer acquisition spend ÷ New customers acquiredRead formula
Guide 4
Customer economics
Estimate lifetime customer revenue, document the model, and compare it with customer acquisition cost.
Use this guide to
- Keep revenue LTV distinct from lifetime profit
- Keep frequency and lifespan units aligned
- Compare customer cohorts consistently
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Customer Lifetime Value Formula
Estimate the revenue expected from a customer over the relationship.
Revenue LTV = Average purchase value × Purchases per year × Customer lifespanRead formula
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Customer Acquisition Cost Formula
Calculate the average customer acquisition spend required to acquire one new customer.
CAC = Customer acquisition spend ÷ New customers acquiredRead formula