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Markup Calculator

Markup is the percentage you add on top of cost price. Enter your cost and markup to get the selling price, the rupee profit and the margin that markup actually delivers.

Traders and distributors usually think in markup, while accountants report margin — this tool shows both so you never confuse the two.

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Markup summary

Cost price
₹1,000.00
Markup amount
₹400.00
Selling price
₹1,400.00
Equivalent margin
28.57%
A 40% markup is only a 28.57% margin — markup is on cost, margin is on price.

Formula

Selling price = Cost price × (1 + Markup% ÷ 100)

Markup% = (Selling price − Cost price) ÷ Cost price × 100

Markup is always larger than the equivalent margin because it is measured against the smaller number (cost).

Worked example

Cost ₹1,000 with a 40% markup gives a selling price of ₹1,400 and a profit of ₹400 — which is only a 28.57% margin.

How to use this calculator

  1. 1Enter your cost price.
  2. 2Enter either the markup percentage you apply or the selling price you charge.
  3. 3Read the resulting selling price and the margin that markup actually gives you.

When businesses use it

  • Applying a standard markup across a new stock category.
  • Converting a supplier's suggested markup into the shelf price you will print.
  • Explaining to a partner why a 50% markup is not a 50% margin.

Setting a markup that survives discounts

Markup is the percentage a business adds to its landed cost to arrive at a selling price. It is the natural unit for anyone who buys to resell, because the cost is known first and the price is derived from it. Distributors typically work on 10–25%, retail hard goods on 40–60%, and services or specialty items far higher where the value is not comparable across sellers.

The number that matters is not the markup you set but the markup that survives. Trade schemes, cash discounts, festival offers and end-of-season clearance all cut into it, so a line priced at a 40% markup and sold at 15% off is really running near 19%. Building the expected discount into the markup at the start is the difference between planned promotions and accidental losses.

Landed cost, not invoice cost, should be the base. Freight inward, loading, packaging, breakage and any GST you cannot claim as input credit are part of what the item actually cost you, and leaving them out makes the markup look healthier than the bank balance suggests.

Common markup errors

  • Applying markup to the pre-freight invoice cost rather than landed cost.
  • Using the same markup on fast and slow-moving stock.
  • Assuming a 30% markup leaves a 30% margin after discounting.
  • Ignoring the interest cost of stock that sits for months.

Learn the maths behind it

  • Markup vs margin

    Markup is calculated on cost; margin on the selling price. The same rupee profit gives two different percentages.

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Calculations happen instantly in your browser. Your calculator inputs aren't sent to our servers. KaroDesk provides calculations and information for general informational purposes. Results should be verified against applicable laws, official notifications, employer policies, lender terms, or professional advice where appropriate. Read our full disclaimer.