Markup & Margin Calculator
Inputs
Results
| Component | Value | Formula |
|---|---|---|
| Cost Price (CP) | ₹1,000.00 | — |
| Profit (SP − CP) | ₹300.00 | SP − CP |
| Markup % | 30.00% | (SP − CP) ÷ CP × 100 |
| Margin % | 23.08% | (SP − CP) ÷ SP × 100 |
| Selling Price (SP) | ₹1,300.00 | CP × (1 + Markup/100) |
Markup & Margin Calculator Guide
What is it & Why use it?
Easily calculate markup percentage and profit margin for your products. This tool helps businesses and retailers set prices strategically while ensuring profitability by understanding the relationship between cost and price.
Margin % = (Price – Cost) ÷ Price × 100
Example Calculation
Product with a Cost Price of ₹500 sold for ₹800:
Benefits & Use Cases
Strategic Pricing
Set prices that cover costs and achieve desired profit levels accurately.
Compare Metrics
Understand the critical difference between markup (on cost) and margin (on price).
For Retailers
Essential for wholesalers and retailers to maintain healthy bottom lines.
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Frequently Asked Questions
Q1: What is markup?
It is the percentage amount added to the cost price to determine the selling price.
Q2: What is margin?
It is the percentage of profit relative to the final selling price (revenue).
Q3: Which is better to track?
Margin is commonly used for analyzing profitability, while markup is used for setting prices.
Q4: Can both be used together?
Yes, businesses often use markup to set the price and margin to report on the profit earned.