How this calculation works
Markup compares profit with the cost of an item. A 25% markup is not the same as a 25% margin.
Markup (%) = (selling price − cost) ÷ cost × 100A worked example
An item costing ₹80 and selling for ₹100 has a 25% markup.
Good to know
Uses the stated formula and assumptions. Displayed decimal values are rounded; use consistent units for all inputs.
Markup grows from the cost side
If an item costs ₹200 and sells for ₹300, the ₹100 increase is a 50% markup. The corresponding margin is only one third of the selling price, about 33.33%. A markup and margin cannot be compared as if their percentages use the same base.
When a supplier or colleague states a percentage, ask which definition they mean. A shared word such as “profit percentage” is not enough to identify the denominator. This calculator explicitly uses cost.
Make the cost basis complete and consistent
An item’s purchase price may not include every cost needed to deliver it to a customer. Packaging, handling or selling charges can alter the economic result. The tool cannot infer costs absent from the input.
A zero cost is rejected because a percentage increase from zero is undefined. Selling below cost produces a negative markup; that can be intentional in a promotion, but the arithmetic alone does not establish a sensible pricing strategy.
A few questions, answered
Is a 100% markup the same as a 100% margin?
No. Doubling cost gives a 100% markup and a 50% margin.
Does this suggest a selling price?
It evaluates the entered cost and selling price. It does not determine a suitable market price.