Markup calculator: cost to selling price

The markup calculator uses selling price = cost × (1 + markup percentage ÷ 100). Enter your cost and chosen markup above to get a selling price, the rupees added above cost and the resulting margin. To calculate markup from an existing price, use (selling price minus cost) ÷ cost × 100.

Worked example: an item costs ₹600 and carries a 50% markup. The amount added is ₹600 × 50 ÷ 100 = ₹300. Selling price is ₹900. The margin on that price is ₹300 ÷ ₹900 × 100 = 33.33%.

How to use the markup calculator

Build the cost base before choosing the percentage. Enter the cost of one item and the markup you want to apply to that cost. Enter a percentage in the markup field, rather than a decimal multiplier. The readout calculates the selling price before GST and shows the amount available above the entered cost.

Use the same unit throughout. If cost is per item, the answer is a price per item. For a bundle, enter the bundle's combined cost and use the result as a bundle price. Save the supporting cost sheet so the calculation can be repeated when supplier charges change.

Xero's markup guide defines markup as the increase over cost and gives the cost-based formula. The calculator rearranges that relationship to find selling price from a chosen markup. Keep the resulting price beside your actual realised selling price when reviewing an offer.

Worked example: from ₹600 cost to ₹900 price

Continue the example with a cost sheet for one delivered item. These are the costs included before acquisition and fixed overhead:

Apply the chosen 50% markup to the ₹600 total. The rupees above cost are ₹300 and the price is ₹900. That ₹300 is available for acquisition, overhead and profit. Record each allocation in the next part of the sheet before setting an ad budget.

If acquisition uses ₹150 and allocated overhead uses ₹60, the remainder is ₹90. Dividing ₹90 by the ₹900 revenue gives 10% after those costs. Keep this final margin beside the original 50% markup so the pricing decision and spending decision use the correct figures.

The calculator's margin readout is the amount above entered cost divided by the calculated selling price. Use the profit margin calculator to add acquisition and overhead to the cost total and reproduce the final 10% result.

Formula for markup and margin

Both calculations begin with selling price minus cost. The denominator changes. Markup divides by cost; margin divides by selling price. Shopify India's markup versus margin guide, published on 16 Sept 2026, explains this distinction.

The following table keeps the example's ₹600 cost fixed and changes the chosen markup. Each row follows directly from the printed formulas:

To convert markup into margin, use margin % = markup % ÷ (100 + markup %) × 100. To convert a desired margin into markup, use markup % = margin % ÷ (100 minus margin %) × 100. These expressions use percentage values rather than decimal rates.

For the table's 20% margin, required markup is 20 ÷ 80 × 100 = 25%. Use this conversion when a supplier discusses markup and your growth sheet requires margin. Write the denominator into the column heading to keep the distinction visible.

Which costs belong in a business markup calculator

Choose the cost base to match the pricing decision. For a product buying decision, landed product cost is a useful starting point. For the price of a delivered ecommerce order, include the expenses attached to fulfilling that order. A cost base that includes delivery needs a different markup from product cost alone to reach the same selling price.

Add packaging and freight from actual bills. Match payment or collection charges to the payment method. Allocate failed-delivery costs across the retained sales that fund those costs. Keep refunded sales out of net revenue and include the expenses left behind by the return.

Separate recoverable tax from expense according to the accounting basis used by your finance team. Enter cost and revenue on the same tax-exclusive basis. Apply the appropriate invoice tax after establishing the base selling price.

When a commission or fee changes with price, calculate its rupee value at the proposed price and update the cost sheet. Repeat until the price and cost rows agree. That makes the final acquisition allowance reproducible from the same invoices and fee terms.

How discounts change your markup

Use the realised price after the discount when checking markup. A product page's list price does not fund acquisition if buyers pay less at checkout.

Reduce the worked price from ₹900 to ₹810 while holding the entered cost at ₹600. The amount above cost falls to ₹210. Markup becomes ₹210 ÷ ₹600 × 100 = 35%. Margin becomes ₹210 ÷ ₹810 × 100 = 25.93%.

Retain the ₹150 acquisition allocation and ₹60 overhead allocation from the example. The ₹210 remainder now pays those costs exactly, leaving ₹0. This offer uses the entire reserve that the original price created. Set the offer budget from the discounted order economics.

For a bundle, rebuild cost from its contents and packaging. Check any change in shipping weight, collection fee and return handling. Then apply the bundle's realised price to the combined cost base. Keep the discounted calculation beside the full-price row so the buying team can see the acquisition allowance for each offer.

Turn the selling price into an ad-spend limit

Start with selling price minus pre-ad variable costs. Reserve the amount required for overhead and profit. The remainder is the acquisition allowance per order. Divide revenue by that allowance to get the required revenue-to-ad-spend ratio.

In the original worked order, ₹900 revenue less ₹600 pre-ad variable cost leaves ₹300. Reserve ₹60 for overhead and ₹90 for profit. The ad allowance is ₹150 and the required ROAS is ₹900 ÷ ₹150 = 6×.

The break-even ROAS calculator finds the point where advertising uses all pre-ad contribution. Use the reserve calculation above to set a trading target that also funds the rest of the business. Keep acquisition costs in one place so agency work or creative costs are covered by the same allowance when relevant.

Zero cost and other input checks

The live tool accepts a positive cost and a markup of zero or more. Zero markup returns the entered cost as the selling price. With zero cost, the cost-based markup percentage is undefined, so enter a positive cost before using this calculator.

For an existing price below cost, the reverse markup formula produces a negative percentage. Record that loss in the margin worksheet and review the offer. This forward pricing tool uses a non-negative markup to calculate a price at or above the entered cost.

Keep precision until the final selling price. After rounding to a customer-facing price, recalculate markup and margin from that exact amount. Save the cost-sheet date with the approved price, then refresh it whenever a supplier bill, fee or offer changes.