Markup & Margin Calculator

Calculate selling price, profit and margin or markup percentage. Convert between markup% and margin% instantly.

Markup is profit expressed as a percentage of cost price.

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Enter cost price and markup percentage above

Markup vs Margin — what's the difference?

Both measure profitability but use a different base. Markup uses cost as the base; margin uses selling price. This leads to different percentages for the same transaction.

Markup Formula
Markup% = (SP − CP) / CP × 100
SP = CP × (1 + Markup%/100)
Cost ₹500, 40% markup → Profit ₹200, SP ₹700
Margin Formula
Margin% = (SP − CP) / SP × 100
SP = CP / (1 − Margin%/100)
Cost ₹500, 30% margin → SP ₹714.29, Profit ₹214.29
Conversion
Margin = Markup / (1 + Markup)
Markup = Margin / (1 − Margin)
40% markup = 28.57% margin. 30% margin = 42.86% markup.

Frequently asked questions

What is the difference between markup and margin?

Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. For a product that costs ₹100 and sells for ₹150, the markup is 50% but the margin is 33.33%. Retailers often confuse the two, leading to pricing errors.

Why does a 50% markup not equal a 50% margin?

Because they use different bases. A 50% markup on ₹100 cost gives a ₹150 selling price. The margin on ₹150 is ₹50 ÷ ₹150 = 33.33%, not 50%. The formula to convert: Margin = Markup ÷ (1 + Markup).

Which is more commonly used — markup or margin?

Retailers and traders in India typically use markup (adding a percentage over cost). Finance and accounting professionals use gross margin (profit as a % of revenue) as it aligns with income statement reporting.

How do I find selling price to achieve a 30% margin?

Divide the cost by (1 − 0.30). For a product costing ₹700: SP = ₹700 ÷ 0.70 = ₹1,000. You earn ₹300 profit, which is 30% of the ₹1,000 selling price.

Does margin include GST?

This calculator works with the prices you enter — you decide whether to include or exclude GST. For B2B pricing, use ex-GST prices. For retail, use MRP inclusive of GST. Your margin calculation should be consistent — both CP and SP should either include or exclude GST.