getassistanceMarkup Calculator
Turn your cost and chosen markup into a selling price, or check the markup on a price you already charge. Free, with no signup.
Your results
Enter cost and markup, then choose Calculate.
- Cost Price
- Markup
- Profit
- Selling price − cost price
- Profit Margin
- Profit ÷ selling price
Money is rounded to 2 decimal places; margin uses the rounded sale and profit. Include the costs relevant to your business.
What is Markup?
Markup is the amount or percentage you add to the cost of a product or service to decide its selling price. It starts with what you spend, then adds an amount to cover your profit and any expenses not already included in that cost.
If an item costs Rs. 8,000, a 25% markup adds Rs. 2,000 and gives a selling price of Rs. 10,000. Markup is calculated using cost price, not selling price. The amount left is only as complete as the costs you entered: packaging, delivery, materials or paid help may also affect what you earn.
How to Calculate Markup
Markup Amount = Cost Price × (Markup % ÷ 100)
Divide your chosen percentage by 100 and multiply it by the cost. That gives the amount to add.
Selling Price = Cost Price + Markup Amount
Add the markup amount to the cost to get your selling price. For an existing selling price, work backwards:
Markup (%) = ((Selling Price − Cost Price) ÷ Cost Price) × 100
First find the profit, then compare it with the cost. This reverse percentage is not defined when cost is zero.
Markup Calculation Example
A supplier pays Rs. 8,000 for an item and chooses a 25% markup.
Rs. 8,000 × 25 ÷ 100 = Rs. 2,000
Rs. 8,000 + Rs. 2,000 = Rs. 10,000
The cost is Rs. 8,000, the profit is Rs. 2,000, and the selling price is Rs. 10,000. The markup is 25%, while profit margin is 20% because Rs. 2,000 is one fifth of the final selling price.
Markup vs Profit Margin
These percentages describe the same profit from different starting points. Markup compares profit to cost price. Profit margin compares profit to selling price.
With an Rs. 8,000 cost, Rs. 10,000 selling price and Rs. 2,000 profit:
Markup: 2,000 ÷ 8,000 × 100 = 25%
Profit margin: 2,000 ÷ 10,000 × 100 = 20%
A 25% markup does not mean a 25% profit margin. Mixing up the two can lead you to charge less than you intended. Need to calculate margin instead? Use our Profit Margin Calculator.
Useful Markup Examples
Here is how different markups change the price of an item costing Rs. 1,000.
| Cost | Markup | Selling Price |
|---|---|---|
| Rs. 1,000 | 10% | Rs. 1,100 |
| Rs. 1,000 | 20% | Rs. 1,200 |
| Rs. 1,000 | 25% | Rs. 1,250 |
| Rs. 1,000 | 50% | Rs. 1,500 |
| Rs. 1,000 | 100% | Rs. 2,000 |
| Rs. 1,000 | 150% | Rs. 2,500 |
Frequently Asked Questions
What is markup?
Markup is the amount or percentage added to cost to set a selling price. An Rs. 200 addition to an Rs. 1,000 cost is a 20% markup.
How do I calculate a 25% markup?
Multiply cost by 0.25, then add that amount to cost. For Rs. 8,000, the addition is Rs. 2,000 and the selling price is Rs. 10,000.
Is markup calculated on cost price or selling price?
Cost price. Divide profit by cost and multiply by 100. Dividing by selling price instead gives profit margin.
Is 20% markup the same as 20% profit margin?
No. On an Rs. 1,000 cost, a 20% markup gives a selling price of Rs. 1,200 and a margin of about 16.67%. A 20% margin would require a selling price of Rs. 1,250.
Can markup be more than 100%?
Yes. A product costing Rs. 1,000 with a 150% markup has Rs. 1,500 added and sells for Rs. 2,500.
How do I calculate selling price from markup?
Use Selling Price = Cost Price × (1 + Markup % ÷ 100). For example, Rs. 1,000 × 1.5 gives Rs. 1,500 at a 50% markup.
Can I use the calculator for services?
Yes. Cost can include labour, materials, subcontracting and other direct service costs. Use costs for the same job or quantity as the selling price.
What happens with zero cost or a negative markup?
Zero cost plus a chosen markup produces zero profit and a zero selling price, so margin is not defined. Reverse markup is not defined at zero cost. The forward mode accepts non-negative markups; use the reverse mode to check a sale below cost and see the loss.
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