Markup Calculator
Markup is the percentage added to cost to set a price — the daily arithmetic of anyone who buys and resells. A wholesaler who pays ₹420 for a pair of shoes and wants a 50% markup charges ₹630. This page does that sum in one step, then reports the margin the price delivers and the rupees you keep, so moving between markup on cost and margin on sales never needs a second guess.
Enter values
Results
- Selling price
- ₹960.00
- Margin on that price
- 37.5%
- Profit per unit
- ₹360.00
How is the Markup calculated?
Enter what one unit costs you — the purchase price plus whatever freight and handling travels with it — and the markup you want on top. The calculator multiplies cost by (1 + markup ÷ 100) to return a selling price in rupees. It also shows the margin that price produces, which always lands below the markup, and the profit earned on each unit sold. Change the markup and watch both numbers move together.
Formula
Selling price = Cost × (1 + Markup % ÷ 100). Profit per unit = Cost × Markup % ÷ 100. Margin % = Markup % ÷ (100 + Markup %) × 100. Cost is what you pay for a single unit, markup is the percentage added to that cost, and margin measures the same rupees against the selling price instead — which is why a 50% markup is only a 33.33% margin.
Example
A mobile cover costs a shop ₹250 including freight, and the owner wants a 60% markup. The price becomes 250 × 1.60 = ₹400, leaving 400 − 250 = ₹150 of profit on each unit. The margin is 150 ÷ 400 × 100 = 37.5%, so 60% on cost converts to 37.5% on sales. If a competitor caps the shelf price at ₹360, entering a 44% markup returns exactly ₹360 (250 × 1.44) and the margin narrows to 30.56%.
Things to remember
Work backwards from the margin you need rather than guessing a markup: a 40% margin requires a 66.67% markup, and the margin row confirms when you have landed there. The calculation ignores discounts, GST and stock that never sells, so revisit it whenever a supplier changes the price you pay.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is calculated on cost, margin on the selling price. A ₹420 product sold at ₹630 carries a 50% markup but a 33.33% margin, because the same ₹210 of profit is divided by two different bases. Markup will always read higher than margin for the same price.
How do I turn a 40% margin into a markup?
Divide the margin by (100 − margin) and multiply by 100: 40 ÷ 60 × 100 = 66.67%. So a product that must deliver a 40% margin needs a 66.67% markup on cost — enter 66.67 here and the margin row reads 40%.
What markup should I charge on a new product?
There is no universal number. Small retail goods often carry 50–100% markup, while groceries and commodities run far lower because volume does the work. Start from the rent, salaries and taxes you must cover, then read the margin the resulting price actually earns.
Does this selling price include GST?
No — the calculator works on the price before tax. Keep GST outside the markup, then add it on top of the selling price when you quote a customer, so the tax you collect passes straight to the government instead of being absorbed by your margin.
Related Calculators
- Profit Margin CalculatorBusiness & StartupCalculate profit, profit margin percentage and markup from your revenue and total cost, with a worked example.
- Break-Even CalculatorBusiness & StartupFind the units and rupees you must sell to cover fixed and variable costs, with contribution margin and margin of safety.
- GST CalculatorIndian TaxAdd or remove GST on any amount, with the CGST and SGST split for intra-state bills and a single IGST line for inter-state ones.
- Business Valuation CalculatorBusiness & StartupEstimate what a small business is worth by applying earnings and revenue multiples to get an indicative valuation range.