About the Markup Calculator
What is the Markup Calculator?
Markup is the percentage added to cost to set a selling price. This markup calculator turns your cost and markup into a price, shows the profit per unit and converts the markup into a margin.
Add the GST rate to see the final price the customer pays.
How to use the Markup Calculator
- Cost Price (₹) (sample: 800)
- Markup on Cost (%) (sample: 40)
- GST Rate to Add (%) (sample: 18)
- Press Calculate Selling Price (results also refresh as you type). The result card shows the Selling Price, along with Profit per unit, Margin on selling price, GST per unit and Price including GST.
Formula used
Selling price = Cost × (1 + Markup %)
- Margin = (price − cost) ÷ price
- Price with GST = selling price × (1 + GST rate)
Markup is always a larger percentage than the margin it produces.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Cost Price (₹) | 800 |
| Markup on Cost (%) | 40 |
| GST Rate to Add (%) | 18 |
| Result | Value |
|---|---|
| Selling Price | ₹1,120 |
| Profit per unit | ₹320 |
| Margin on selling price | 28.57% |
| GST per unit | ₹201.6 |
| Price including GST | ₹1,322 |
Markup vs margin
| Markup on cost | Margin on price |
|---|---|
| 20% | 16.67% |
| 25% | 20% |
| 33.33% | 25% |
| 50% | 33.33% |
| 100% | 50% |
Margin = Markup ÷ (1 + Markup); Markup = Margin ÷ (1 − Margin).
Tips for using the Markup Calculator
- Include freight, packaging and payment fees in cost before applying markup.
- Retail markups of 40–100% are common because shops carry rent, staff and unsold stock.