Markup & Margin Calculator
Calculate selling price, profit and margin or markup percentage. Convert between markup% and margin% instantly.
Markup is profit expressed as a percentage of cost price.
Margin is profit expressed as a percentage of selling price.
Convert between markup% and margin% using the exact formula.
Markup vs Margin — what's the difference?
Both measure profitability but use a different base. Markup uses cost as the base; margin uses selling price. This leads to different percentages for the same transaction.
How to calculate markup and margin
Markup and margin both measure profit, but each divides profit by a different base. Use these formulas with the price (SP) and cost (CP) of any product:
- Markup % = (Price − Cost) ÷ Cost × 100
- Margin % = (Price − Cost) ÷ Price × 100
- Convert markup to margin: Margin = Markup ÷ (1 + Markup)
- Convert margin to markup: Markup = Margin ÷ (1 − Margin)
In the conversion formulas, express the percentage as a decimal (40% = 0.40), then multiply the result by 100 to read it back as a percentage.
Worked examples
- Cost ₹500, sells for ₹700. Profit = ₹200. Markup = 200 ÷ 500 × 100 = 40%. Margin = 200 ÷ 700 × 100 = 28.57%.
- Calculate margin from a 25% markup. Margin = 0.25 ÷ (1 + 0.25) = 0.25 ÷ 1.25 = 0.20 = 20% margin.
- Calculate markup from a 30% margin. Markup = 0.30 ÷ (1 − 0.30) = 0.30 ÷ 0.70 = 0.4286 = 42.86% markup. On a ₹700 cost the selling price is ₹1,000.
Markup vs margin conversion table
Quick reference for converting a markup percentage into its equivalent margin percentage (Margin = Markup ÷ (1 + Markup)).
| Markup % | Margin % |
|---|---|
| 10% | 9.1% |
| 15% | 13.0% |
| 20% | 16.7% |
| 25% | 20.0% |
| 30% | 23.1% |
| 40% | 28.6% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50.0% |
| 150% | 60.0% |
| 200% | 66.7% |
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. For a product that costs ₹100 and sells for ₹150, the markup is 50% but the margin is 33.33%. Retailers often confuse the two, leading to pricing errors.
Why does a 50% markup not equal a 50% margin?
Because they use different bases. A 50% markup on ₹100 cost gives a ₹150 selling price. The margin on ₹150 is ₹50 ÷ ₹150 = 33.33%, not 50%. The formula to convert: Margin = Markup ÷ (1 + Markup).
Which is more commonly used — markup or margin?
Retailers and traders in India typically use markup (adding a percentage over cost). Finance and accounting professionals use gross margin (profit as a % of revenue) as it aligns with income statement reporting.
How do I find selling price to achieve a 30% margin?
Divide the cost by (1 − 0.30). For a product costing ₹700: SP = ₹700 ÷ 0.70 = ₹1,000. You earn ₹300 profit, which is 30% of the ₹1,000 selling price.
Does margin include GST?
This calculator works with the prices you enter — you decide whether to include or exclude GST. For B2B pricing, use ex-GST prices. For retail, use MRP inclusive of GST. Your margin calculation should be consistent — both CP and SP should either include or exclude GST.
How do I convert markup to margin?
Use Margin = Markup ÷ (1 + Markup), with the markup written as a decimal. For a 40% markup: 0.40 ÷ 1.40 = 0.2857 = 28.57% margin. Margin is always lower than the equivalent markup. Switch to the "Markup ↔ Margin" tab above to convert any value instantly.
How do I calculate margin from markup?
Divide the markup by one plus the markup. A 25% markup becomes 0.25 ÷ 1.25 = 20% margin; a 100% markup becomes 1.00 ÷ 2.00 = 50% margin. See the markup vs margin conversion table above for common values.