Markup calculator — selling price, markup percentage or cost

How to use the markup calculator

1. Under Find, choose Selling price, Markup % or Cost.
2. Fill in the two fields that appear:
   • for Selling price: Cost and Markup (%)
   • for Markup %: Cost and Selling price
   • for Cost: Selling price and Markup (%)
3. Pick the Currency.
4. Read the main answer at the top, then Profit per unit, Profit margin (of price) and Markup (of cost).

What it does and when to use it

Shops, makers and resellers usually think in markup: “I add 40% to what I paid.” Accountants and investors usually talk in margin: “40 paise of every rupee of sales is profit.” Mixing the two up is one of the most common pricing mistakes. Someone who wants a 40% margin but adds a 40% markup ends up with only 28.57%.

This calculator works in all three directions, so you can set a price from your costs, check the markup on a price a supplier suggests, or work back from a competitor’s price to the cost it implies. It always shows the margin next to the markup, so you can see both at once.

When you sell at a reduced price, the discount calculator shows the sale price, and you can feed that back here to see what markup is left. If your prices must include tax, run the result through the GST calculator afterwards. For a business view of costs, prices and sales volume, see the break-even calculator.

How it works

All three modes use the same relationship between cost, price and markup:

• Selling price = cost × (1 + markup ÷ 100)
• Markup % = (selling price − cost) ÷ cost × 100
• Cost = selling price ÷ (1 + markup ÷ 100)

Then, whichever mode you use:

• Profit per unit = selling price − cost
• Profit margin = profit ÷ selling price × 100

Because margin is divided by the larger number (the price), it is always smaller than the markup on the same item, as long as the item makes a profit.

Worked examples

These figures come from the calculator’s own function.

Pricing from cost. Find Selling price, cost ₹100, markup 40%. Selling price ₹140.00, profit per unit ₹40.00, profit margin 28.57%.

Checking a markup. Find Markup %, cost ₹100, selling price ₹150. Markup 50%, profit per unit ₹50.00, profit margin 33.33%.

Working back to the cost. Find Cost, selling price ₹140, markup 40%. Cost ₹100.00 and profit per unit ₹40.00. Note that taking 40% off ₹140 would give ₹84, not ₹100; reversing a markup means dividing, not subtracting.

Limits and tips

• Unit figures only. Enter the cost of one item. Overheads such as rent and wages are not included unless you add them to the cost.
• Losses show as negatives. A selling price below cost gives a negative profit and a negative markup.
• Cost must be above zero when finding the markup, since markup is a share of cost.
• Keep tax out of both cost and price for a true picture of your own profit.
• All calculation happens in your browser.