Markup Calculator

Markup % = (Selling Price − Cost) / Cost × 100. Example: cost ₹100, selling price ₹150. Markup = (50/100) × 100 = 50%. Markup tells you how much you've added to cost to arrive at selling price. Common in retail and wholesale, where pricing is often "cost plus." A 100% markup means doubling the cost. Don't mistake markup for margin — they're calculated against different denominators. The calculator handles both metrics so you can switch views or convert one to the other depending on industry convention.

Selling Price = Cost × (1 + Markup %). Example: cost ₹250 with 40% markup → selling price = 250 × 1.40 = ₹350. Alternatively: selling price = cost + (cost × markup %). Both give the same answer. This is "cost-plus" pricing — useful when you have known costs and need to set retail prices quickly. Different categories use different markups: clothing 100-200%, groceries 15-30%, electronics 10-20%, restaurants 200-400% (food). The calculator lets you input any markup % and see resulting price, plus the implied margin.

Markup is the percentage added to cost. Margin is the percentage of selling price that's profit. Same product, different reference point. Cost ₹100, selling price ₹150: markup = 50%, margin = 33.3%. They give different numbers for identical scenarios. Conversion: Margin = Markup / (1 + Markup). Markup = Margin / (1 − Margin). A 33.3% margin needs a 50% markup. A 50% margin needs a 100% markup. Always know which one a colleague or vendor is using — the difference can be huge. The calculator converts between them and shows the implied selling price.

For 30% margin, you need approximately 42.86% markup. Formula: Markup = Margin / (1 − Margin) = 0.30 / 0.70 = 0.4286. So on a ₹100 cost, sell at ₹142.86 to achieve 30% margin. Common conversion table: 20% margin = 25% markup; 30% margin = 42.86% markup; 40% margin = 66.67% markup; 50% margin = 100% markup. People often think 30% markup gives 30% margin — it doesn't; 30% markup gives only 23% margin. The calculator converts between margin and markup instantly.

Margin = Markup / (1 + Markup). Example: 50% markup. Margin = 0.50 / 1.50 = 0.3333 or 33.3%. Conversely, Markup = Margin / (1 − Margin). For 25% margin, markup = 0.25 / 0.75 = 0.3333 or 33.3%. Quick reference: 25% markup = 20% margin; 50% markup = 33.3% margin; 100% markup = 50% margin; 200% markup = 66.7% margin. Most pricing mistakes happen because of confusion between these. Always do the conversion explicitly. The calculator converts both ways with no math required from your end.

Wholesale markup is applied by distributors when selling to retailers. The retailer then adds their own markup for the consumer. Example: manufacturer sells at ₹100 → wholesaler marks up 30% to ₹130 → retailer marks up 50% to ₹195. The end consumer sees ₹195 against a manufacturer cost of ₹100 — nearly 2x. Wholesale markups are usually thinner than retail (15-35% vs 50-150%). When pricing, separate out each layer's costs and margins. The calculator handles multi-layer markup chains, showing the cumulative impact from manufacturer to consumer.

First, calculate the all-in landed cost: invoice cost + shipping + customs duty + GST + handling. Then apply markup on this real cost, not the invoice cost alone. Example: invoice ₹500, shipping ₹50, GST ₹90 (18%) — landed cost = ₹640. With 40% markup, selling price = ₹896. If you'd marked up only on the ₹500 invoice price, you'd have priced at ₹700, losing the ₹140 of additional costs. Many small businesses bleed margin this way. Always include all input costs and taxes in the markup base. The calculator supports detailed cost inputs.