Markup is the amount added to the cost of a product to determine its selling price, expressed as a percentage of the cost. It's calculated as Profit divided by Cost, multiplied by 100. Markup tells retailers, wholesalers, and freelancers how much they are adding on top of what something costs them, rather than how much of the final price is profit.

How do I calculate markup?

Markup (%) = [(Selling Price − Cost) / Cost] × 100. For example, if a product costs ₹500 and sells for ₹750, Profit = ₹250, and Markup = (250 / 500) × 100 = 50%. If you instead know your cost and desired markup, you can rearrange the formula to solve for selling price: Selling Price = Cost × (1 + Markup% / 100). Our Markup Calculator handles both directions automatically.

What is the difference between markup and margin?

Markup is profit as a percentage of cost, while margin is profit as a percentage of selling price. Because selling price is always higher than cost on a profitable sale, markup is always a larger percentage than margin for the same transaction. For example, a ₹250 profit on a ₹750 sale (₹500 cost) is a 50% markup but only a 33.3% margin. Confusing the two leads to underpricing.

What is a good markup?

A good markup varies by industry. Retail apparel commonly runs 100-150% markup (keystone pricing or higher), grocery and convenience items often sit around 15-30%, and services or made-to-order products can carry markups well above 200%. Rather than copying a universal number, base your markup on your overhead costs, competitor pricing, and the margin you need to stay profitable.

How do retailers use markup?

Retailers use markup to set shelf prices quickly from wholesale or landed cost, apply consistent pricing rules across large catalogs, and account for shrinkage, returns, and discounting when planning profitability. Many retailers use standard markup multipliers by category, then adjust individual items based on demand and competitor prices.

Retail & Ecommerce Pricing

Markup Calculator — Retail Pricing & Markup Percentage (2026)

Calculate markup percentage from cost and selling price, or work forwards from cost and a target markup to set the right price — built for retailers, ecommerce sellers, wholesalers, and freelancers.

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Instant calculations

Works forwards or backwards

Markup calculator showing cost price, selling price, and markup percentage for a retail product

Markup Percentage Calculator

Choose what you know — cost & selling price, or cost & target markup.

Cost Price (₹)

What you pay to acquire or produce the item

Selling Price (₹)

The price you sell at, or plan to sell at

Results

Profit

₹250

Markup %

50.00%

Margin % (on selling price)

33.33%

A cost price of ₹500 and selling price of ₹750 gives a profit of ₹250 — a markup of 50.00%.

Now that you have your markup, here's what to do next:

Create an invoice

Invoice Generator →

Check your actual margin

Margin Calculator →

What is Markup?

Markup is the amount added to the cost of a product to arrive at its selling price, expressed as a percentage of that cost. It answers the question retailers, wholesalers, and freelancers ask constantly: how much am I adding on top of what this actually cost me?

Markup is the pricing metric most commonly used by retailers and wholesalers because it starts from a number you already know — your cost — and builds the selling price from there. It's the backbone of cost-plus pricing, and it's what most point-of-sale and inventory systems use to generate shelf prices across an entire catalog.

Use the Markup Calculator above to find your markup from cost and selling price, or work forwards from cost and a target markup to find the price you should charge. If you'd rather start from selling price and work out profitability, see our Margin Calculator.

Markup Formula

The core formula, plus the forward formula for setting selling price.

Find Markup

Markup (%) = [(Price − Cost) / Cost] × 100

Profit = Selling Price − Cost

Use this when you know cost and selling price.

Find Selling Price

Selling Price = Cost × (1 + Markup% / 100)

Profit = Selling Price − Cost

Use this when you know cost and a target markup, and need to set a price.

Example: a product costs ₹500 and you want a 50% markup. Selling Price = 500 × (1 + 0.50) = ₹750. Profit = ₹750 − ₹500 = ₹250, which checks out at exactly 50% markup on cost.

Markup vs Margin

Same profit, two different percentages — and mixing them up is one of the most common pricing mistakes.

Markup

Profit as a percentage of cost. Always larger than margin on the same sale, since cost is smaller than selling price.

Markup = Profit / Cost

Margin

Profit as a percentage of selling price. Always smaller than markup on the same sale — often confused with it when setting prices.

Margin = Profit / Price

Example: cost ₹500, selling price ₹750, profit ₹250. Markup = 250 / 500 = 50%. Margin = 250 / 750 = 33.3%. Pricing at a "50% margin" instead of a "50% markup" would produce a much higher selling price than intended — the gap widens as the target percentage grows. Use our Margin Calculator to compare both directly.

Pricing Examples

How different types of sellers apply the markup calculation day to day.

Retail Reseller

A boutique buys stock at ₹450 per unit and sells it for ₹900.

Profit = ₹900 − ₹450 = ₹450

Markup = (450 / 450) × 100 = 100%

Ecommerce Seller (Forward Pricing)

An online store's landed cost per unit is ₹320, and it wants a 65% markup.

Selling Price = 320 × (1 + 0.65) = ₹528

Profit = ₹528 − ₹320 = ₹208

Wholesaler

A wholesaler buys in bulk at ₹80 per unit and applies a standard 25% markup for distributors.

Selling Price = 80 × (1 + 0.25) = ₹100

Profit = ₹100 − ₹80 = ₹20 per unit

Freelancer / Service Provider

A freelance designer's material and subcontracting cost for a project is ₹15,000, with a target 80% markup.

Selling Price = 15,000 × (1 + 0.80) = ₹27,000

Profit = ₹27,000 − ₹15,000 = ₹12,000

Retail Pricing Tips

Practical guidance for retailers, ecommerce sellers, and wholesalers setting markup-based prices.

Include All Landed Costs

Base markup on total landed cost — purchase price plus shipping, customs, and handling — not just the supplier's invoice price, or your real markup will be lower than planned.

Use Category-Level Markups

Different product categories can sustain different markups based on competition and demand. Fast-moving staples usually carry thinner markup than slow-moving specialty items.

Plan for Shrinkage and Returns

Build expected returns, damage, and theft into your markup target so realized profitability doesn't fall short of what the calculator shows on paper.

Check Margin After Setting Markup

A markup that sounds generous can still translate to a thin margin. Always convert your markup to margin before finalizing a price, so you know exactly what share of revenue is profit.

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Frequently Asked Questions

Answers to common questions about calculating and using markup.

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