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Calculators · ~2 min

Markup calculator

“What price should I sell at for my target markup?”

Set a cost and a markup or target margin and get the selling price, profit per unit and the equivalent margin.

Set price by

your selling price

Selling price

₹700

Profit per unit

₹200

Equivalent margin

28.6%

the guide

Markup calculator: set prices from your costs

By Shivam Bhandari · Reviewed 31 October 2026 · How we write

Markup pricing adds a percentage on top of cost to set a selling price. It is simple and ensures every sale covers its cost, which is why many retailers and manufacturers use it.

If you think in margins instead, this calculator also works backwards from a target margin to the price you need.

the formula

Price = Cost × (1 + Markup %) · Price for target margin = Cost ÷ (1 − Margin %)

  • · Markup is based on cost; margin is based on price.
  • · A target margin must be below 100%.

Worked example

  • Cost ₹500 with a 40% markup → price ₹700, profit ₹200, margin 28.6%.
  • Cost ₹500 with a 40% target margin → price ₹833, profit ₹333.
  • The difference between ‘40% markup’ and ‘40% margin’ is ₹133 per unit.

Tips

  1. 1Check that your markup still leaves room for discounts and returns.
  2. 2Use different markups for different product categories.
  3. 3Compare your markup-based price with what customers will pay (value-based pricing).
  4. 4Review markups when costs change.

Frequently asked questions

How do you calculate selling price from markup?

Multiply cost by (1 + markup ÷ 100). A ₹500 cost with 40% markup sells at ₹700.

What is a typical retail markup?

It varies by category — from low markups on groceries and electronics to much higher ones on fashion and jewellery.

Is markup pricing a good strategy?

It is simple and safe, but ignores what customers are willing to pay. Combine it with value-based thinking.

How do I price for a target margin?

Divide cost by (1 − target margin). For a 40% margin on a ₹500 cost, price = 500 ÷ 0.6 ≈ ₹833.