How to use Markup Calculator
Markup adds a percentage of cost to set a selling price. A 40% markup on ₹500 adds ₹200, producing a price of ₹700. Because the denominator differs, the resulting margin is lower than 40%.
Include the costs that must be recovered in your cost figure. This tool does not add GST, platform fees or shipping automatically. A price based only on purchase cost may leave less profit after other business expenses.
The formula
Selling price = cost × (1 + markup / 100)
Margin = markup / (100 + markup) × 100
A worked example
Cost per item (₹): 500 · Markup on cost (%): 40
Suggested selling price: ₹700.00
Markup is based on cost. Selling price excludes taxes and additional fees.
Questions about this calculation
Does a 40% markup create a 40% margin?
No. The margin is 40 / 140, or approximately 28.57%.
Is GST included in the suggested price?
No. Add any applicable tax separately using the correct rate.
Formula checks: 2026-10-08. Assumptions & corrections.