Markup Calculator
Work out your markup percentage on any product.
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Type in what an item costs you and what you sell it for, and the Markup Calculator shows how far your price sits above cost, expressed as a percentage of cost. It also gives the profit per unit and the matching profit margin, which helps when a supplier talks in markup but your accountant talks in margin.
The markup formula with an example
Markup % = (selling price − cost price) ÷ cost price × 100
Say you buy a set of kitchen containers for ₹750 and sell it for ₹1,000. The profit is ₹250, and 250 ÷ 750 × 100 gives a markup of 33.33%. The calculator shows:
- Profit: 250.00
- Margin: 25%
- Markup: 33.33%
Both percentages describe the same ₹250. Markup measures it against the ₹750 cost; margin measures it against the ₹1,000 price.
Pricing from a target markup
The calculator works from a cost and a price you already have. To find the price for a markup you want, multiply first and then check the result here:
Selling price = cost × (1 + markup ÷ 100)
A cost of ₹600 with a 40% markup gives 600 × 1.4 = ₹840. Enter 600 and 840 and you will see a 40% markup, but only a 28.57% margin. A 100% markup, often called keystone pricing, simply doubles the cost and always equals a 50% margin.
Most shops then round to a price point such as ₹849 rather than ₹840. Enter 600 and 849 to see what the rounding is worth: the markup rises to 41.5% and the margin to 29.33%. Checking the rounded price this way stops a string of small rounding-down decisions from quietly eroding your markup across a whole catalogue.
Markup to margin conversion table
Margin = markup ÷ (100 + markup) × 100, with both in percent.
| Markup | Equivalent margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20% |
| 30% | 23.08% |
| 50% | 33.33% |
| 100% | 50% |
The classic mistake is adding 30% to cost and assuming you now earn 30% on every sale. You earn 23.08% of the selling price, which matters when your rent, salaries and discounts are budgeted as a share of sales.
GST, MRP and landed cost
If you are GST-registered, the tax you collect is not your income, so compare cost and price without GST. A product with an MRP of ₹118 that includes 18% GST brings in ₹100 of actual revenue. If you bought it for ₹80 before GST, your markup is 25%, not the 47.5% you would get by comparing ₹80 with ₹118. The GST calculator strips tax out of an inclusive price.
Also use your landed cost as the cost price: the purchase price plus freight, packaging and any courier charges to get stock onto your shelf. Leaving these out makes markup look healthier than it is. These figures are arithmetic for planning, not accounting or tax advice.