Markup Calculator
Cost plus markup to price — and the whole chain from maker to MRP, both ways.
How this was calculated
Markup ↔ margin
Price chain to MRP
How this was calculated
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the Markup Calculator
Markup is what you add on top of your cost: a ₹80 item with a 25% markup sells for ₹100. This calculator turns a cost and a markup into a selling price — with GST added if your price includes it, and rounded up to a price point such as ₹99 or ₹1,299 if you like, showing the markup and margin you really earn after rounding.
It also converts markup to margin (the same ₹20 is a 25% markup but a 20% margin), shows keystone pricing (a 100% markup), and builds a price chain from maker to distributor to retailer to the MRP the customer pays. Run the chain forwards from your cost, or backwards from a target MRP to find the highest cost you can afford. To work from a margin, a price or a profit instead, use the margin calculator.
How to use it
- Enter the cost of one unit and the markup you want, or pick a preset such as keystone (100%).
- If the price you quote includes GST, choose the GST rate; otherwise leave it at no GST.
- Optionally round the price up to a price point (a whole number, a multiple of 5 or 10, or an ending of .99, 9 or 99).
- Use Markup ↔ margin to convert either way, with a table of common markups at your cost.
- In Price chain to MRP, choose From cost to MRP or From MRP to cost, set each business’s markup or margin, and read the price at every step.
Examples
Price ₹100 · profit ₹20 · margin 20% · 1.25× cost
₹104 → ₹109: you earn a 36.25% markup (26.61% margin)
Price ₹900 — a 100% markup and a 50% margin
₹60 → ₹66.67 → ₹83.33 → MRP ₹98.33
₹99 ÷ 1.18 = ₹83.90 → retailer buys at ₹67.12 → distributor buys at ₹60.41 → highest affordable cost ₹40.27
Markup and margin are not the same
Both compare the profit with something else. Markup = profit ÷ cost; margin = profit ÷ selling price. So margin = markup ÷ (1 + markup) and markup = margin ÷ (1 − margin):
- 25% markup = 20% margin
- 50% markup = 33.33% margin
- 100% markup (keystone) = 50% margin
- 200% markup = 66.67% margin
A margin can never reach 100%, but a markup has no upper limit. Mixing them up is a common pricing mistake: adding 30% to the cost gives a 23.08% margin, not 30%.
Keystone pricing
“Keystone” is the retail habit of doubling the wholesale cost: a 100% markup, which is a 50% margin. It is a quick starting point, not a rule — the calculator shows the keystone price next to your own markup so you can compare.
How the price chain and MRP work
Each business in the chain adds its share on prices excluding GST: every GST-registered business pays GST on what it buys, collects GST on what it sells and claims the difference as input tax credit, so GST is not a cost to any of them. Only the final customer bears it, which is why the MRP is the retailer’s price plus GST. Under the Legal Metrology (Packaged Commodities) Rules, 2011, rule 2(m), the retail sale price is the maximum price at which the packaged item may be sold to the consumer, inclusive of all taxes.
A stage can add a markup (a percentage of what it pays) or a margin (a percentage of what it sells for). Trade margins are often quoted as a margin; when a margin is quoted on the MRP including GST and the same GST rate applies all along the chain, it is the same percentage as the margin on the price excluding GST.
Price points
Rounding is always up, so you never earn less than the markup you set, and it applies to the price the customer pays (including GST when a rate is chosen). The calculator then works back to the price excluding GST and shows the markup and margin you actually earn at the rounded price.
Limitations
- Per unit only: freight, discounts, schemes, returns and overheads are not included — add them to the cost, or use the profit calculator and break-even calculator.
- The chain assumes every business is GST-registered and claims input tax credit. A business that cannot claim it should include the GST it pays in its cost.
- MRP labelling rules (how the MRP is printed and rounded on a package) are not checked.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
How do I calculate the selling price from a markup?
Multiply the cost by 1 plus the markup as a decimal: a cost of ₹250 with a 40% markup is 250 × 1.40 = ₹350.
How do I convert a markup into a margin?
Divide the markup by 1 plus the markup: a 40% markup is 0.40 ÷ 1.40 = 28.57% margin. The table on this page lists common conversions.
What is a keystone markup?
A 100% markup: the selling price is double the cost, which is a 50% margin.
How do I find the maximum cost for a target MRP?
Choose From MRP to cost in the price chain, enter the MRP and each business’s markup or margin. The calculator takes GST out of the MRP, then removes each stage’s share in reverse order until it reaches the highest cost the maker can afford.
Should the markup be on the price with or without GST?
Without GST if you are registered and claim input tax credit: the GST you collect is paid on to the government. Choose the GST rate only to see the price the customer pays.