How to use the Markup Calculator
- Enter your cost price.
- Choose whether you want to set a markup on cost or a margin on price.
- Enter the percentage and read the selling price.
How it's calculated
Show the formula
Price from markup = cost × (1 + markup ÷ 100)
Price from margin = cost ÷ (1 − margin ÷ 100)
Price from margin = cost ÷ (1 − margin ÷ 100)
Markup is profit as a % of cost; margin is profit as a % of the selling price. A 40% markup gives a 28.6% margin, while a 40% margin needs a 66.7% markup.
Worked example
These are the example numbers the calculator opens with. Change any of them above to see your own result.
You enter
| Cost price | Rs 1,200 |
|---|---|
| I want to set | Markup on cost |
| Percentage | 40% |
You get
| Selling price | Rs 1,680 |
|---|---|
| Profit per unit | Rs 480 |
| Markup on cost | 40% |
| Profit margin | 28.57% |
Tips
- Retail shops often think in markup; accountants and investors look at margin.
- Round the final price to a sensible amount, such as ending in 99 or 50.
Frequently asked questions
What markup gives a 50% margin?
A 100% markup: doubling the cost gives a 50% margin.
Can margin be 100% or more?
No. Margin is profit as a share of the price, so it is always below 100%. Markup can be any size.