Margin vs markup on a 100 cost
Setup: Cost 100; selling price 150.
Expected result: Gross profit 50; margin 33.33%; markup 50%.
Original testing
Docuivo Lab
These worked examples make our calculations inspectable. Each test states the inputs and expected result so readers can reproduce the arithmetic independently.
Reproducible reference tests
Target selling price at 40% markup
Setup: Cost 80; target markup 40%.
Expected result: Selling price 112; gross profit 32; equivalent margin 28.57%.
Freelance hourly-rate baseline
Setup: Income goal 60,000; annual business costs 12,000; 46 working weeks; 24 billable hours/week.
Expected result: Annual revenue requirement 72,000; billable capacity 1,104 hours; baseline rate about 65.22 per billable hour before location-specific taxes.
Invoice subtotal with two line items
Setup: 2 × 125 plus 3 × 80, before tax or discount.
Expected result: Line totals 250 and 240; subtotal 490.
50% target gross margin
Setup: Cost 100 and desired margin 50%.
Expected result: Required selling price 200. Gross profit 100, which is 50% of selling price and a 100% markup on cost.
Why publish these tests?
Utility sites should be verifiable, not black boxes. Publishing the assumptions and arithmetic makes it easier to catch errors, compare results and understand what each percentage actually represents.
These examples are planning and educational references, not tax, legal or financial advice. Read How We Test for the broader methodology.