About this calculator
Enter the cost and the markup. You get the selling price, the profit per unit and the margin that markup gives, which is always lower than the markup itself.
How to use it
- Enter the cost price.
- Enter the markup percentage.
- Read the selling price and margin.
The formula
Selling price = cost × (1 + markup ÷ 100)
- cost
- what the item cost you
- markup
- the percentage added to cost
Worked example
Cost ₹600 with a 40% markup
- Selling price = 600 × 1.40 = ₹840.
- Profit = ₹240.
- Margin = 240 ÷ 840 × 100 = 28.57%.
What the result means
Use markup to set prices quickly, but check the margin: a 40% markup keeps only 28.57% of the selling price as profit.
Assumptions
- The markup applies to the full cost.
Limitations
- GST, discounts and overheads are not included.
Frequently asked questions
How do I convert markup to margin?
Margin = markup ÷ (100 + markup) × 100. A 40% markup is a 28.57% margin.
How do I convert margin to markup?
Markup = margin ÷ (100 − margin) × 100. A 20% margin is a 25% markup.
Should I add GST before or after markup?
Usually after: set your price on cost without GST, then add GST at the applicable rate.
Last reviewed on 1 October 2026. Found a mistake? Tell us.