SaaS Markup Calculator

This SaaS Markup Calculator converts a unit delivery cost and a chosen markup percentage into a selling price. It is useful for subscription businesses that want a quick price floor for a plan, add-on, implementation package, or usage bundle. The result separates cost, markup dollars, selling price, and gross margin. Because markup is measured against cost while margin is measured against revenue, seeing both helps prevent a common pricing mistake.

Inputs

USD
%
units
Result
Selling price per unit
Markup amount per unit
Gross margin
Revenue at expected volume
Gross profit at expected volume

1. Enter delivery cost
Use the variable cost attributable to one subscription period, seat, transaction bundle, or service package.

2. Set the markup
Enter the percentage to add on top of cost. A 100% markup doubles the cost.

3. Add expected volume
Provide an optional unit count to estimate aggregate revenue and gross profit.

4. Review price and margin
Compare the calculated selling price with the resulting gross margin percentage.

Selling price = Unit cost × (1 + Markup % ÷ 100)
Markup amount = Selling price − Unit cost
Gross margin % = Markup amount ÷ Selling price × 100

Markup uses cost as its denominator. Gross margin uses selling price as its denominator, so the two percentages are not interchangeable.

What the result means

Use the main result together with the supporting metrics to compare scenarios and identify the assumptions with the largest effect.

Markup uses cost as its denominator. Gross margin uses selling price as its denominator, so the two percentages are not interchangeable.

Given
Given: unit cost of $30, markup of 100%, and 500 units.

Calculation
Markup amount = $30 × 100% = $30. Selling price = $30 + $30 = $60. Gross margin = $30 ÷ $60 × 100 = 50%. Revenue = $60 × 500 = $30,000.

Result
The plan price is $60 per unit, producing $15,000 of gross profit before fixed operating expenses.

Is a 50% markup the same as a 50% margin?

No. A 50% markup on $100 produces a $150 price, which is a 33.33% margin.

What costs should I include?

Include costs that rise with delivering the unit, such as infrastructure, support usage, payment processing, or third-party API fees. Fixed overhead can be handled separately.

Can markup exceed 100%?

Yes. A 200% markup means the markup equals twice the cost and the selling price equals three times the cost.

What happens when cost is zero?

The calculator can display a price of zero under this cost-plus method. For near-zero marginal-cost products, value-based pricing may be more useful.

How should I use the volume totals?

Treat them as a simple scenario estimate. Actual revenue may differ because of discounts, churn, taxes, refunds, and plan mix.