Billing Bazaar Markup calculator
Enter what an item costs you and the markup you add. See the selling price, your profit and the margin that markup really gives you.
| Cost price | |
| Profit per unit | |
| Margin (on selling price) | |
| Total sale value | |
| Total profit |
A 25% markup gives a 20% margin. Shops often confuse the two and price too low.
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How to use the Markup calculator
- Enter the cost price of one unit.
- Enter the markup % you want to add.
- Optionally enter a quantity to see the total sale and profit.
- Read the selling price, profit and margin.
How markup works
Selling price = cost × (1 + markup ÷ 100). A ₹500 item with a 40% markup sells for ₹700, giving ₹200 profit. As a share of the selling price, that ₹200 is a margin of about 28.6%.
Common markups and their margins
A 25% markup gives a 20% margin, 50% gives 33.3%, and 100% (doubling the cost) gives 50%. Keep this in mind when a supplier or competitor talks about 'margin' – they may mean markup.
Questions people ask
What is the difference between markup and margin?
Markup is profit divided by cost; margin is profit divided by selling price. The same ₹200 profit on a ₹800 cost is a 25% markup but a 20% margin.
How do I convert markup to margin?
Margin % = markup ÷ (100 + markup) × 100. A 25% markup is 25 ÷ 125 × 100 = 20% margin.
Should I add GST before or after markup?
Add your markup to the cost without GST to get your price, then add GST on top when billing. Adding markup on a GST-inclusive cost inflates your price and confuses your margin.
Is the selling price allowed to be above MRP?
No. For packaged goods with an MRP printed, you cannot charge more than the MRP (inclusive of all taxes), whatever your markup works out to.