Markup Calculator
Calculate selling price from cost and markup, or recover markup and margin from actual sales. Perfect for retailers and wholesalers.
Selling price
₹1,000
Profit per unit
₹200
Margin on selling price
20%
Margin is always lower than markup
A 25% markup on an ₹800 cost gives a ₹1,000 selling price and ₹200 profit — a 20% margin. Retailers in India usually quote margin; wholesalers quote markup, so keep the two straight when comparing.
Markup Calculator on True Calculator gives you an instant, accurate answer with no sign-up and no app install. Calculate selling price from cost and markup, or recover markup and margin from actual sales. Perfect for retailers and wholesalers. Every result shows the formula and a worked example so you can verify the calculation yourself, and all values are computed in your own browser — your numbers never leave your device.
Popular uses: markup calculator · markup formula · selling price calculator
Reviewed by the True Calculator team · Last updated: August 2026
How We Calculate
This calculator uses standard financial formulas verified by our team. All calculations are performed instantly in your browser using JavaScript — no data is sent to any server.
We use RBI-approved formulas and regularly updated bank rates. All rates and standards are sourced from official government and regulatory websites.
When to Use This Calculator
Markup is the daily pricing math of every Indian shopkeeper, wholesaler and service provider. A kirana store adding 10% over wholesale, a clothing boutique marking up 40%, an electronics dealer working on dealer margins, and a freelancer pricing a project at cost plus profit all use the same cost-to-price relationship. The calculator works in both directions: pricing new stock from cost, and auditing past sales — entering what a product cost and what it actually sold for reveals the realised markup and margin, catching pricing drift before it shrinks profit. Manufacturers set dealer price lists from markup, exporters quote FOB prices by adding their margin to landed cost, and accountants reviewing stock registers check whether markups match company policy. When the question is 'what do I charge, and what am I earning?', markup and margin together give the answer.
How to Use This Calculator
- Step 1: Choose the mode — cost plus markup percentage, or cost and actual selling price.
- Step 2: Enter the cost price of the product or service in rupees.
- Step 3: Enter the markup percentage, or the selling price you actually charged.
- Step 4: Read the selling price, profit per unit and margin on selling price in the result panel.
Worked Example
A Lucknow gift shop buys brass idols at ₹800 each and applies a 25% markup. The calculator prices them at ₹1,000, giving ₹200 of profit per idol. The margin on the selling price is 20% — because ₹200 is one-fifth of ₹1,000, not one-quarter of ₹800. Switching to the second mode with the same cost of ₹800 and the actual sale price of ₹1,000 recovers the same 25% markup and 20% margin, confirming the pricing is consistent.
Tips and Common Mistakes
- •Tip 1: Keep the two definitions separate — markup is on cost, margin is on selling price.
- •Tip 2: In wholesale, use markup; in retail and sales reporting, use margin — matching the trade's language avoids confusion.
- •Tip 3: Compare the margin with your operating costs — a 20% margin must still cover rent, staff and wastage.
- ✗Mistake 1: Quoting '25% margin' when you mean a 25% markup — the selling price must be higher to reach a true 25% margin.
- ✗Mistake 2: Calculating markup on a GST-inclusive cost — GST is collected for the government, not part of your margin.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is profit as a percentage of the cost price; margin is profit as a percentage of the selling price. A 25% markup on ₹800 yields ₹1,000 selling price, but the margin on that sale is only 20%.
Why are markup and margin often confused?
Both are expressed as percentages but use different bases — cost versus selling price. A retailer quoting '20% margin' needs a 25% markup to achieve it, so misreading one as the other silently erodes profit.
What markup is typical for Indian retailers?
Grocery and FMCG move at thin markups of 5–15%, apparel at 30–60% and electronics often at 10–25% after dealer discounts. It depends heavily on category and competition, so compare with your own trade's norms.
Does GST change the markup calculation?
GST sits on top of your selling price and is collected on behalf of the government, so it is not profit. Calculate markup on pre-GST prices; if you only know the GST-inclusive price, divide by 1.18 for 18% GST first.
Can I use this for services?
Yes. Treat your delivery cost as the cost price and the service fee as the selling price. Freelancers and agencies use markup thinking to price retainers above their cost of delivery.
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