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Markup Calculator
Selling price from cost and markup — with margin vs markup explained.
Selling price
How it works
Markup: price = cost × (1 + markup%) Margin: price = cost ÷ (1 − margin%) Profit = price − cost, margin = profit ÷ price × 100
Worked example: a product costing ₹800 with a 50% markup sells for ₹800 × 1.50 = ₹1,200. The profit is ₹400, and the margin is ₹400 ÷ ₹1,200 = 33.33% — markup and margin are not the same number.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a share of cost; margin is profit as a share of price. A 50% markup on ₹800 gives a 33.33% margin, because the two percentages divide by different numbers.
Can margin ever be 100% or more?
No. Margin approaches 100% only as price grows without bound, and it cannot reach it while cost is positive. If you need a margin of 100%, the maths has gone wrong somewhere.
Which one should a shop use?
Use margin when you plan from the selling price — it tells you what share of each sale you keep. Use markup when you set prices from cost. Just never mix the two in one calculation.
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