💰 Markup & Margin Calculator
Calculate selling price, profit, and gross margin instantly. Understand the difference between markup vs margin with visual charts.
Enter the amount you paid for the product
Markup percentage on cost price
Formula: Selling Price = Cost × (1 + Markup/100)
Margin: (Profit ÷ Selling Price) × 100%
📊 What is Markup?
Markup is the difference between the cost of a good or service and its selling price. It is expressed as a percentage over the cost. For example, a 50% markup means you are selling the item for 50% more than what you paid for it.
📐 Formulas Used
Markup Formula
Markup % = ((Selling Price - Cost) / Cost) × 100
Also: Selling Price = Cost × (1 + Markup/100)
Margin Formula
Margin % = ((Selling Price - Cost) / Selling Price) × 100
Profit as percentage of selling price
📈 Markup vs Margin: The Key Difference
Markup is based on Cost Price (Profit/Cost), while Margin is based on Selling Price (Profit/Sale Price).
Cost Price
₹ 100
Selling Price
₹ 150
Profit
₹ 50
Markup
50%
(50/100)
Margin
33.3%
(50/150)
Markup is always higher than margin for the same transaction!
📋 Markup to Margin Conversion Table
| Markup % | Margin % | Markup % | Margin % |
|---|---|---|---|
| 10% | 9.1% | 60% | 37.5% |
| 20% | 16.7% | 70% | 41.2% |
| 30% | 23.1% | 80% | 44.4% |
| 40% | 28.6% | 90% | 47.4% |
| 50% | 33.3% | 100% | 50.0% |
❓ Frequently Asked Questions
Is markup the same as margin?
No. Markup is profit relative to Cost Price, while Margin is profit relative to Selling Price. Markup is typically higher than margin for the same transaction. For example, a 50% markup equals a 33.3% margin.
How is markup calculated?
Markup % = ((Selling Price - Cost Price) / Cost Price) × 100. For example, if you buy a product for ₹100 and sell it for ₹150, your markup is 50%.
Is a higher markup always better?
Not necessarily. A very high markup might make your product too expensive for customers, reducing sales volume. The ideal markup depends on your industry, competition, and customer demand. Balance profitability with market competitiveness.
What is a good markup percentage?
Good markup varies by industry: Retail clothing: 50-100%, Electronics: 20-40%, Food/Beverage: 60-300%, Services: 100-300%. Research your industry standards for optimal pricing.
How do I convert markup to margin?
Margin % = Markup % / (1 + Markup %). Example: 50% markup = 50% / (1 + 50%) = 33.33% margin. Use our calculator above to see the conversion instantly!
⚠️ Disclaimer: This calculator provides estimates for business pricing decisions. Always consider market conditions, competition, and customer demand when setting final prices.