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Everyday Tools

Markup Calculator

Markup is the percentage you add on top of your cost to arrive at a selling price. It is the most common way small shops and traders price goods: buy at ₹800, add 25%, sell at ₹1,000.

Last reviewed:

₹
%
Selling price
₹1,000.00
Cost price
₹800.00
Profit
₹200.00
Profit margin (on selling price)
20%
Markup (on cost)
25%
  • Markup is added on top of cost. The same price expressed as a margin is always a smaller percentage.

This calculator moves between cost, markup and selling price in any direction and shows the equivalent profit margin, so you can compare it with margin-based pricing.

How to use this calculator

  1. Choose what you want to find: selling price, markup or cost.
  2. Enter the two known values.
  3. Read the selling price, profit, margin and markup.
  4. Adjust the markup until the price and margin suit you.

Formula and variables

Selling price = Cost × (1 + Markup ÷ 100) Markup % = (Selling price − Cost) ÷ Cost × 100 Cost = Selling price ÷ (1 + Markup ÷ 100)

  • Markup - profit as a percentage of cost.
  • Margin - profit as a percentage of selling price, shown for comparison.

Worked example

A trader buys goods for ₹800 and adds a 25% markup.

Inputs and results for the worked example
Cost price₹800
Markup25%
Selling price₹1,000
Profit₹200
Profit margin20%
  1. Markup amount = 800 × 25% = 200.
  2. Selling price = 800 + 200 = 1,000.
  3. Margin = 200 ÷ 1,000 = 20%.

What changes the result

  • Competition. Market prices often cap how much markup you can apply.
  • Overheads. Markup must cover rent, wages and other costs, not just goods.
  • GST. Apply GST on top of the selling price after markup.
  • Product type. Fast-moving goods usually carry lower markup than slow-moving or specialised goods.

Benefits and practical uses

  • Price quickly with cost-plus pricing.
  • See the margin hidden behind any markup.
  • Work backwards from a price to the cost.

Assumptions and limitations

  • Prices exclude GST.
  • Markup is on cost price.
  • Overheads and discounts are not included.

Frequently asked questions

How do I calculate markup?

Subtract cost from the selling price, divide by cost and multiply by 100.

What is the difference between markup and margin?

Markup is based on cost and margin on selling price. A 25% markup is a 20% margin.

What markup gives a 50% margin?

A 100% markup. The price is double the cost, so half the price is profit.

Can markup be over 100%?

Yes. A product sold at three times its cost has a 200% markup.

Does markup include GST?

No. Add GST separately after setting your price.

References

Page last reviewed on . This calculator gives estimates for planning only; it is not financial advice and not an offer from any lender.