Markup Calculator
3 ModesCalculate selling price from cost and markup %, reverse-calculate markup from your prices, or find the price needed to hit a target gross margin. Includes markup vs margin comparison.
Calculation Mode
Pricing Inputs
Cost Price
₹500.00
Selling Price
₹700.00
Markup vs Gross Margin — Side by Side
Markup on Cost
40.00%
Profit ÷ Cost × 100
Every ₹100 of cost earns ₹40.00 profit
Gross Margin
28.57%
Profit ÷ Selling Price × 100
Every ₹100 of revenue retains ₹28.57 profit
Markup Comparison Table
For cost price ₹500.00
| Markup % | Selling Price | Profit | Gross Margin |
|---|---|---|---|
| 10% | ₹550.00 | ₹50.00 | 9.09% |
| 20% | ₹600.00 | ₹100.00 | 16.67% |
| 25% | ₹625.00 | ₹125.00 | 20.00% |
| 30% | ₹650.00 | ₹150.00 | 23.08% |
| 40%active | ₹700.00 | ₹200.00 | 28.57% |
| 50% | ₹750.00 | ₹250.00 | 33.33% |
| 60% | ₹800.00 | ₹300.00 | 37.50% |
| 75% | ₹875.00 | ₹375.00 | 42.86% |
| 100% | ₹1,000.00 | ₹500.00 | 50.00% |
💡 Click any row to apply that markup instantly.
Markup Formulas
Selling Price from Markup
₹500 × 1.40 = ₹700 (40% markup)
Markup % from Prices
(₹700 − ₹500) ÷ ₹500 × 100 = 40%
Price from Target Margin
₹500 ÷ (1 − 0.30) = ₹714.29 (30% margin)
Gross Margin from Markup
40 ÷ 140 × 100 = 28.57% margin
Markup vs Gross Margin Conversion
| Markup % | Gross Margin % |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20.00% |
| 30% | 23.08% |
| 40% | 28.57% |
| 50% | 33.33% |
| 75% | 42.86% |
| 100% | 50.00% |
| 150% | 60.00% |
| 200% | 66.67% |
Typical Markup by Industry in India
Industry benchmarks to help you set competitive and profitable markups.
| Industry | Typical Markup |
|---|---|
| Grocery / FMCG | 10 – 30% |
| Apparel / Fashion | 50 – 200% |
| Electronics | 15 – 40% |
| Furniture | 100 – 200% |
| Jewellery | 25 – 75% |
| Restaurants | 200 – 400% |
| Software / SaaS | 200 – 1000% |
| Pharmaceuticals | 20 – 60% |
ℹ️These are indicative ranges. Actual markups depend on brand positioning, competition, distribution costs, and operating expenses.
Frequently Asked Questions
What is markup?
Markup is the amount added to the cost price of a product to arrive at the selling price. It is expressed as a percentage of the cost. For example, if a product costs ₹500 and you sell it for ₹700, the markup is ₹200 or 40% of the cost price.
What is the markup formula?
Markup % = (Selling Price − Cost Price) ÷ Cost Price × 100. To find selling price from markup: Selling Price = Cost Price × (1 + Markup% / 100). For example, cost ₹500 with 40% markup: ₹500 × 1.40 = ₹700.
What is the difference between markup and gross margin?
Markup is calculated as a percentage of cost, while gross margin is calculated as a percentage of selling price. For the same transaction: if cost is ₹500 and selling price is ₹700, markup = 40% but gross margin = 28.57%. Markup is always higher than gross margin for the same values.
How do I convert markup to gross margin?
Gross Margin % = Markup% ÷ (100 + Markup%) × 100. For example, 40% markup → 40 ÷ 140 × 100 = 28.57% gross margin. Conversely, Markup% = Gross Margin% ÷ (100 − Gross Margin%) × 100.
What is a good markup percentage?
A "good" markup depends entirely on your industry. Retail typically uses 50–100% (keystone pricing), restaurants use 200–400% on food, software products often exceed 500%, while commodity businesses may work on 10–20%. You must set markup high enough to cover all operating expenses beyond just product cost.
What is keystone pricing?
Keystone pricing is a retail pricing strategy where the selling price is set at exactly double the wholesale cost, resulting in a 100% markup (50% gross margin). It is a simple rule of thumb used in fashion, jewellery, and general retail to ensure sufficient margin to cover overhead and generate profit.