Business
Markup Calculator
Apply a markup percentage to a cost to find the selling price, and see the margin that results.
Updated 16 Sep 2026
A 45.0% markup on a cost of 800.00 gives a selling price of 1,160.00 and a profit of 360.00, which is a 31.03% margin on the sale price.
Enter your cost and the markup percentage you want to apply. The calculator returns the selling price, the profit per unit and the margin that markup actually produces.
What is the Markup Calculator?
Markup is the amount added to cost to arrive at a selling price, expressed as a percentage of that cost. It is the most common way small businesses set prices, because cost is the number you already know.
How to use the Markup Calculator
- Enter the cost per unit.
- Enter the markup percentage you want to apply.
Watch the margin figure as well as the price — that is what your accounts will report.
Formula
Selling price = cost + profit
Resulting margin = (profit ÷ selling price) × 100
The resulting margin is always lower than the markup applied. If you need to hit a specific margin, the required markup is: margin ÷ (100 − margin) × 100. A 40% margin needs a 66.67% markup.
How the calculation works
Markup is applied directly to cost, so the arithmetic is a single multiplication. The margin is then calculated backwards from the resulting price, which is why the two percentages diverge.
Worked example
An item costing ₹800 with a 45% markup:
- Profit = 800 × 0.45 = ₹360
- Selling price = 800 + 360 = ₹1,160
- Resulting margin = 360 ÷ 1160 × 100 = 31.03%
Uses and benefits
- Price consistently across a product range.
- See immediately what margin a given markup delivers.
- Set a markup that clears your overheads rather than guessing.
Frequently asked questions
Use margin ÷ (100 − margin) × 100. For a 40% margin: 40 ÷ 60 × 100 = 66.67% markup. For a 50% margin you need a 100% markup.
Yes. Your markup has to cover rent, salaries, marketing, returns and tax before anything is left as profit. Marking up only to cover unit cost plus a small amount usually means losing money once overheads are counted.