Mark-Up vs Margin Calculator

Calculate and convert between markup percentage and profit margin. Enter cost price and selling price to instantly see both markup and margin, and how they differ.

Mark-Up vs Margin Calculator

Convert between markup and margin — understand the critical difference

Calculate from
Cost price Rs 800

Your total cost to produce or purchase this item

Re 1Rs 10L
Rs
Selling price Rs 1,000
Re 1Rs 20L
Rs
Profit amount
---
Selling price − Cost
Markup %
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Profit / Cost
Margin %
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Profit / Revenue
Cost price---
Selling price---
Profit (Rs)---
Markup = Profit / Cost---
Margin = Profit / Revenue---
Cost vs profit split
Cost: ---
Profit: ---

Markup and margin represent the same profit in rupees but as percentages of different bases — do not interchange them.

Markup vs margin at different profit levels
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ThriftRupee Insight

A 50% markup is NOT a 50% margin. If your cost is Rs 100 and you apply 50% markup, you sell at Rs 150 — but your margin is only 33.3% (Rs 50 profit / Rs 150 selling price). Traders who confuse the two often underprice their goods. A 50% margin actually requires a 100% markup!

Markup vs Margin — The Most Misunderstood Business Concepts

Markup and margin are two ways of expressing the same profit — but they use different bases. Markup expresses profit as a percentage of cost. Margin expresses profit as a percentage of revenue (selling price). The confusion between these two causes serious pricing mistakes in small businesses — either underpricing (thinking you have 50% margin when you actually have 33%) or overpricing relative to competitors.

The conversion formulas

To convert markup to margin: Margin% = Markup% ÷ (100 + Markup%) × 100. To convert margin to markup: Markup% = Margin% ÷ (100 − Margin%) × 100. These formulas are useful when your accountant speaks in margins but you do your purchasing in cost-plus markup. Both ultimately represent the same business reality — how much profit you make per rupee of sales.

Frequently asked questions

What is the difference between markup and margin?▼
Markup = Profit / Cost × 100. Margin = Profit / Selling Price × 100. Both use the same Rs profit figure but different denominators. Markup uses cost as the base; margin uses revenue as the base. For cost Rs 80 and selling price Rs 100: Markup = 20/80 = 25%. Margin = 20/100 = 20%.
How do I convert markup to margin?▼
Margin = Markup / (1 + Markup). Example: 50% markup → 50/(1+50%) = 50/1.5 = 33.3% margin. Conversely, to convert margin to markup: Markup = Margin / (1 − Margin). Example: 33.3% margin → 33.3%/(1−33.3%) = 33.3%/66.7% = 50% markup.
Which should I use for pricing — markup or margin?▼
Use margin for financial analysis (it matches revenue-based metrics like gross margin and net margin). Use markup for day-to-day pricing (easier to apply to cost: "I'll add 30% markup to this product"). Know both — lenders and investors speak in margins; your supplier quotes costs on which you apply markup.
What is a good markup for retail businesses in India?▼
Retail markup varies widely: FMCG retail 10–25%, fashion/apparel 100–200%, jewellery 25–35% (on making charges, not gold value), electronics 5–15%, restaurants 200–400% on food cost, medical devices 100–300%. Higher markup doesn't always mean higher profit — turnover and volume matter equally.

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