Markup Calculator
Free markup calculator. Enter cost price and selling price to get markup percentage on cost, profit per unit and the equivalent profit margin.
About the Markup Calculator
A markup calculator that works out the percentage you add to cost to reach a selling price, plus the equivalent profit margin — you buy at a cost, mark up, and see both perspectives on the same profit.
Markup is the percentage you add to your cost to arrive at a selling price — the trader's everyday pricing arithmetic. Buy at ₹700, sell at ₹1,000, and your markup is (1,000 − 700) ÷ 700 = 42.9%. It's the natural way to price when you start from what things cost you: apply a standard markup across a product line and the prices set themselves.
The number to keep separate in your head is margin, which divides the same profit by the selling price instead of the cost, and therefore always looks smaller: that 42.9% markup is a 30% margin. The two have fixed conversions — margin = markup ÷ (1 + markup), and markup = margin ÷ (1 − margin) — and this calculator always shows both so you can quote whichever your counterpart uses. Distributors and retailers often negotiate in margin; manufacturers and importers usually think in markup. Knowing both languages avoids leaving money on the table.
Common practice: keystone pricing in retail is a 100% markup (doubling cost, a 50% margin); food service often marks up ingredients 200–300%; commodity trading may survive on single-digit markups with volume. Whatever your norm, sanity-check it against your fixed costs with the break-even calculator — a markup that looks healthy per unit can still be too thin if your volumes are low relative to rent and salaries.
How to use the Markup Calculator
- Enter your basic details in the fields provided.
- Select the appropriate options from the dropdowns.
- View your precise calculation results instantly.
Worked example
cost ₹700, selling price ₹1,000 → markup 42.86% on cost, profit ₹300 per unit, equivalent margin 30%.
Formula
Markup % = (selling price − cost) ÷ cost × 100. Equivalent margin % = (selling price − cost) ÷ selling price × 100.Frequently asked questions
- How do I convert markup to margin?
- Margin = markup ÷ (1 + markup). A 50% markup is a 33.3% margin; a 100% markup is a 50% margin. Going the other way, markup = margin ÷ (1 − margin).
- What is keystone pricing?
- The retail convention of doubling the wholesale cost — a 100% markup, equal to a 50% gross margin. It's a starting point, not a rule; fast-moving or highly competitive items often carry less.
- Should I use markup or margin for pricing?
- Use markup when you start from cost and want a price. Use margin when you start from a target share of revenue. They're two views of the same profit — this calculator shows both so nothing is lost in translation.
- Is my financial data secure?
- Absolutely. All calculations happen entirely in your browser and none of your inputs are saved or sent to any server.
- Can I use this for official tax filing?
- While highly accurate for planning and estimation, always consult your CA or tax professional for final official filings.
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