Markup Calculator

Convert cost and selling price into markup, margin, and gross profit.

Enter your values

Change any field. The result is recalculated on this device.

Formula, example and assumptions
Markup50%
Indian rupees
Indian rupees

Your result

Local calculation
Markup50%

Markup expresses profit as a percentage of cost, while margin expresses it as a percentage of selling price. Enter the cost and price for the same unit.

Cost
₹500
Selling price
₹750
See how this is calculated

Result breakdown

Margin
33.33%
Profit per unit
₹250.00
Check the inputs and method

These are your current inputs, not the worked example further down the page.

Cost
₹500
Selling price
₹750

Method

Profit = selling price − cost. Markup (%) = 100 × profit ÷ cost. Margin (%) = 100 × profit ÷ selling price. Conversely, a chosen markup m gives price = cost × (1 + m ÷ 100).

Read the worked example and assumptions

How this calculation works

Markup describes how much a selling price exceeds its cost base. It is useful when checking a supplier quotation or a price built from landed product cost. This tool also shows margin so that a cost-based percentage is not mistaken for the share of sales retained. Use a selling price excluding tax collected for the government when comparing operating profitability.

Profit = selling price − cost. Markup (%) = 100 × profit ÷ cost. Margin (%) = 100 × profit ÷ selling price. Conversely, a chosen markup m gives price = cost × (1 + m ÷ 100).

Worked example

This example uses illustrative inputs. Your current result is shown above.

An item costing ₹500 and selling for ₹750 earns ₹250 before other costs. Markup is ₹250 ÷ ₹500 × 100 = 50%; margin is ₹250 ÷ ₹750 × 100 = 33.33%. The same ₹250 profit has different percentages because the denominators differ.

Assumptions and limits

  • Both cost and selling price must be positive and refer to the same unit or batch.
  • Packaging, commissions and delivery affect the answer only if included in your cost basis; tiered discounts and sales volumes are not modelled.

Questions people ask

Does a 50% markup mean a 50% margin?

No. A 50% markup makes price 1.5 times cost, so profit is one-third of sales.

Which cost should I enter?

Use the cost basis relevant to your decision, such as purchase plus freight and packaging per unit. Keep that basis consistent when comparing prices.

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