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Pricing Calculator
Selling price from cost and a target margin or markup — without mixing the two up.
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 unit costing ₹500 with a 40% markup sells for ₹500 × 1.40 = ₹700, a profit of ₹200. The margin on that price is ₹200 ÷ ₹700 = 28.57% — the same sale, described two different ways.
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 40% markup gives a 28.57% margin on the same numbers, because the two divide by different amounts.
Can margin be 100%?
No, not while the cost is positive. Margin approaches 100% only as the price grows without bound. If your margin field hits 100%, the formula divides by zero, so the calculator caps it below 100%.
Which one should I use to set a price?
Use margin when you plan from the selling price, because it tells you what share of each sale you keep. Use markup when you build up from cost. Just never mix the two in one calculation.
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