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Markup Calculator
Retail & PricingDetermine the exact selling price needed to hit your target profit. Automatically adds GST and compares markup against profit margin.
Common Markup Presets
Your purchase / production cost
₹
Percentage added to cost
%
Recommended Selling Price
₹
Pre-tax invoice price
Profit Margin
%
Per-Unit Profit
₹
GST Amount
₹
Final MRP (incl. GST)
₹
Markup to Margin Conversion Table
| Markup on Cost | Equivalent Margin | Cost: ₹100 Selling Price |
|---|---|---|
| 15% | 13.04% | ₹115.00 |
| 25% | 20.00% | ₹125.00 |
| 50% | 33.33% | ₹150.00 |
| 100% | 50.00% | ₹200.00 |
Related Business & Tax Tools
View All ToolsHow to Use This Tool
Simple steps to calculate and verify
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1
Enter Product Cost Price Input the purchase or manufacturing cost of your good or service.
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2
Enter Desired Markup or Margin Type either your target markup percentage on cost or target profit margin percentage on sales.
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3
Review Instant Two-Way Sync The calculator computes the corresponding metric, required selling price, and gross profit in rupees.
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4
Apply to Quotations & Catalogs Copy recommended prices directly into your product inventory or client proposals.
Pro Tips & Statutory Advice
Practical business & compliance advice
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Common Pricing Pitfall A 50% markup on a ₹100 cost gives a ₹150 price, which represents a 33.3% margin, NOT a 50% profit margin!
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100% Markup = 50% Margin To achieve a true 50% gross profit margin, you must price goods at double your cost price (100% markup).
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Factor in Expected Discounts If your sales process involves giving 10% discounts to close deals, bake that into your baseline markup so net margins stay intact.
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Benchmark Against Market Competitors Ensure aggressive markups do not push product prices beyond prevailing market rates for competitive commodities.
Frequently Asked Questions
Everything you need to know about pricing markup and GST integration.
What is the formula for calculating markup?
Markup Percentage = ((Selling Price − Cost Price) ÷ Cost Price) × 100. For example, if a product costs ₹400 and you sell it for ₹600, your markup is (200 ÷ 400) × 100 = 50%.
Should markup be calculated before or after adding GST?
Always apply your markup to the pre-tax base cost price to determine your pre-tax selling price. GST must then be calculated as a percentage of the final selling price. Never apply markup on top of GST, as tax amounts belong to the government.