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Open Calculator →Margin & Markup Calculator
Convert gross profit margin to markup percentage and determine target selling price from product cost.
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Pricing & Cost Inputs
Your manufacturing or wholesale cost
₹
Percentage added onto cost
%
Units to project total batch profit
Units
Popular Markups:
Pricing Breakdown
Recommended Selling Price (Per Unit)
₹1,250
Selling at ₹1,250 gives a gross profit of ₹250 per unit (20.0% profit margin).
Profit Per Unit
₹250
Gross Margin
20.00%
Markup on Cost
25.00%
Total Cost (Batch)
₹1,000
Total Revenue (Batch)
₹1,250
Total Gross Profit
₹250
Markup vs Margin: Understanding the Key Difference
In retail, manufacturing, and e-commerce, conflating Markup and Margin is one of the most common causes of pricing miscalculations and under-profitability:
| Metric | Formula | Base Reference | Example (Cost ₹1,000, Sell ₹1,250) |
|---|---|---|---|
| Markup | (Profit ÷ Cost) × 100 |
Cost Price | (₹250 ÷ ₹1,000) × 100 = 25% Markup |
| Gross Margin | (Profit ÷ Revenue) × 100 |
Selling Price | (₹250 ÷ ₹1,250) × 100 = 20% Margin |
Markup to Margin Conversion Table
Because margin uses the higher selling price as its denominator, a target margin always requires a higher markup percentage:
| Desired Gross Margin % | Required Markup on Cost % | Cost (₹) | Selling Price (₹) | Profit (₹) |
|---|---|---|---|---|
| 10% Margin | 11.11% Markup | ₹1,000 | ₹1,111.11 | ₹111.11 |
| 15% Margin | 17.65% Markup | ₹1,000 | ₹1,176.47 | ₹176.47 |
| 20% Margin | 25.00% Markup | ₹1,000 | ₹1,250.00 | ₹250.00 |
| 25% Margin | 33.33% Markup | ₹1,000 | ₹1,333.33 | ₹333.33 |
| 33.33% Margin | 50.00% Markup | ₹1,000 | ₹1,500.00 | ₹500.00 |
| 50% Margin | 100.00% Markup (Keystone) | ₹1,000 | ₹2,000.00 | ₹1,000.00 |
Frequently Asked Questions
What is Keystone pricing?
Keystone pricing is a traditional retail pricing method where the merchandise is sold for double its wholesale cost (a 100% markup), resulting in an exact 50% gross profit margin.
Why does a 50% discount erase a 100% markup?
If an item costs ₹1,000 and is marked up 100% to ₹2,000, offering a 50% sale discount cuts ₹1,000 off the selling price, bringing the price back to your original ₹1,000 cost (0% profit).
Does this calculator upload my business costs or sales volume?
No. All calculations run 100% locally in your web browser. No numbers, costs, or products are sent to any remote server or stored anywhere.