Margin and markup calculator
Markup and margin are both ways to describe profit, but they are not the same number. This calculator converts between them and finds the selling price.
How to use this calculator
- Choose what you want to find.
- Enter the cost per unit.
- Enter the markup or margin percentage, or the selling price if you chose that option.
- Read the price, profit, markup and margin together.
Worked examples
Example 1
A ₹600 product marked up by 40%.
You enter
| I want to | Find the price from cost and markup % |
|---|---|
| Cost per unit | ₹600 |
| Percentage | 40% |
You get
| Selling price | ₹840.00 |
|---|---|
| Profit per unit | ₹240.00 |
| Markup (profit / cost) | 40% |
| Margin (profit / price) | 28.57% |
Example 2
The same cost sold at a 40% margin.
You enter
| I want to | Find the price from cost and margin % |
|---|---|
| Cost per unit | ₹600 |
| Percentage | 40% |
You get
| Selling price | ₹1,000.00 |
|---|---|
| Profit per unit | ₹400.00 |
| Markup (profit / cost) | 66.67% |
| Margin (profit / price) | 40% |
How it works
Markup is profit as a share of cost; margin is profit as a share of the selling price. A 50% markup gives a margin of only 33.3%, and a 100% markup gives a 50% margin.
Mixing them up is a common reason for under-pricing. If a supplier says they want a 30% margin, the price is cost / 0.70, not cost x 1.30.
Formula
Price from markup = cost x (1 + markup). Price from margin = cost / (1 - margin). Markup = profit / cost; margin = profit / price.
Common questions
Which should I use to set prices?
Either works if you are consistent; margin is easier to compare with business targets.
Does it include GST?
No, enter cost and price before GST.
Can margin reach 100%?
No, margin is always below 100%; markup has no limit.
Learn more
Read the lesson Small business and self-employment finance on pusaram.com for the ideas behind this calculator.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.