Margin & Markup Calculator

How this calculator works

1. Step 1Cost₹800.00What one unit costs you.
2. Step 2Profit₹200.00Selling price minus cost.
3. Step 3Margin20%Profit divided by the selling price.
4. Step 4Markup25%Profit divided by the cost.

Margin and markup describe the same rupee profit. They differ only in what you divide by. Margin uses the selling price; markup uses the cost. That is why the markup figure is always the larger one when you make a profit.

Pick the two figures you know. With cost and price, the tool finds the profit and both percentages. With one amount and one percentage, it solves the missing amount first, then the rest.

Margin and markup alone cannot give a price, because they only fix the ratio of price to cost. One of your two inputs must be a rupee amount.

Worked example: one product

The same ₹200.00 profit is 20% of the price and 25% of the cost. Working backwards, a ₹1,000.00 price with a 20% margin means the cost can be at most ₹800.00.

Margin versus markup

Typing a margin target into a markup formula undercharges. If you want a 25% margin on a ₹800.00 cost, the price must be ₹1,066.67, not ₹1,000.00.

The conversions are margin = markup ÷ (100 + markup) × 100 and markup = margin ÷ (100 − margin) × 100. Doubling the cost, a 100% markup, is only a 50% margin.

Read the result

The headline answers the figure you were missing; the table shows all five side by side.

Profit is per unit, in rupees. Margin tells you what share of each sale is left after the cost. Markup tells you how much you added to what you paid.

A negative figure is a loss. Selling a ₹800.00 item for ₹700.00 gives a -14.29% margin and a -12.5% markup.

Prices before or after GST

Keep cost and selling price on the same basis, usually both before GST.

For a GST-registered seller who claims input tax credit, GST collected is not your income. Enter cost and price before GST so the margin reflects what you keep.

If your prices include GST, remove it first with the GST calculator, using the rate that applies to your goods. This tool does not add or remove GST.

Assumptions and limits

• OverheadsRent, salaries, delivery and marketing are not deducted.
• TaxesGST and income tax are not added or removed.
• DiscountsThe selling price is what you actually receive per unit.
• RangesMargin -100% to 99%; markup -50% to 9,900%.

These are gross, per-unit figures. Net margin after all business costs needs your full accounts. No intermediate rounding is applied; displayed rupees round to paise.

Related pricing tools

Margin and markup describe the same profit from two bases. Discounts and tax change the final price.

To see how a discount cuts the price, use the discount calculator. The GST calculator adds or removes tax, and the break-even calculator finds the sales that cover fixed costs.

Common mistakes

• Mistake: Adding a 25% markup to hit a 25% margin.

  Instead: Use cost plus margin mode, or convert the margin to a markup first.

• Mistake: Mixing a GST-inclusive price with a GST-exclusive cost.

  Instead: Put both figures on the same tax basis before comparing.

• Mistake: Treating gross margin as take-home profit.

  Instead: Subtract overheads separately to see what the business keeps.

• Mistake: Comparing a supplier’s markup with a competitor’s margin.

  Instead: Convert both to the same measure first.

Checking the method

Every golden case is re-solved as a linear system and checked against two published examples.

Margin follows OpenStax’s gross profit margin ratio; markup follows OpenStax’s mark-up model. An independent script re-solves every case exactly, and the tests reproduce both OpenStax worked examples listed in the sources.

Read how we test our calculators, or browse more money calculators.