Selling Price Calculator
Enter your cost price and the percentage you want to earn — choose whether that percentage is a margin (share of selling price) or a markup (share of cost). The calculator returns the price to quote and the GST-inclusive price customers see.
Handy for MRP planning, marketplace listings and quotations where the buyer expects one inclusive number.
Common slabs are 0, 5, 12, 18 and 28. Any custom rate works too.
Selling price
- Cost price
- ₹1,000.00
- Profit per unit
- ₹333.33
- Selling price (excl. GST)
- ₹1,333.33
- GST on selling price
- ₹240.00
- Price to show customer (incl. GST)
- ₹1,573.33
- Margin
- 25%
- Markup
- 33.33%
Formula
Margin basis: Selling price = Cost ÷ (1 − Margin% ÷ 100)
Markup basis: Selling price = Cost × (1 + Markup% ÷ 100)
Margins of 100% or more are impossible — that would mean zero cost.
Worked example
Cost ₹1,000 with a 25% target margin gives ₹1,333.33 before GST. At 18% GST the customer pays ₹1,573.33.
How to use this calculator
- 1Enter your cost price including freight and handling.
- 2Enter the margin or markup percentage you want to earn.
- 3Read the selling price to quote, then add GST separately on the invoice.
When businesses use it
- Pricing a new product for the first time from a target margin.
- Repricing a catalogue after a supplier price revision.
- Quoting a service where you want a fixed percentage over your delivery cost.
Pricing from cost to shelf price
Setting a price is a chain of decisions, and each link has to be handled in order: landed cost first, then the profit you need, then any commission or discount you expect to give away, and GST last. Reversing that order is why so many businesses end up with a price that looks profitable on a spreadsheet and disappoints in the bank statement.
Working backwards from a target margin is more reliable than adding a habitual percentage. If you need 30% of the selling price to remain as profit, divide the cost by 0.70 rather than adding 30% to cost, which would only give you a 23% margin. The gap between those two methods is the single most common pricing leak in Indian trading businesses.
Round the final figure with intent. Indian buyers respond to prices ending in 9, 49 or 99, but rounding down from a calculated ₹1,352 to ₹1,299 costs real margin. Round up to ₹1,399 where the market allows, or absorb the difference deliberately rather than by habit.
Build these into the price
- Marketplace commission and payment gateway fees on online sales.
- Expected returns and replacement cost for the category.
- Free delivery, if you offer it above a cart value.
- The seasonal discount you already know you will give.
Learn the maths behind it
- GST inclusive vs exclusive pricing
Exclusive: tax is added on top of your price. Inclusive: the price already contains tax, so you divide it back out.
- How to calculate profit margin
Margin % = (Selling price − Cost) ÷ Selling price × 100 — always measured against revenue, not cost.
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