Markup vs Margin Price Calculator

The markup vs margin formula in rupees for shopkeepers — price any item for your target margin. Use the free Markup vs Margin Price Calculator below — enter your values and get instant results, right in your browser. Selling price = Cost ÷ (1 − Target margin ÷ 100). Profit = Selling price − Cost. Note: cost × 1.30 gives a 30% markup but only a 23.1% margin — the divisor formula is the correct one for margin targets.

How to use the Markup vs Margin Price Calculator

Shopkeepers often add 30% to cost and think they earned a 30% margin — they actually earned about 23%. This markup vs margin formula in rupees for shopkeepers fixes that mistake: enter your cost and the margin you truly want, and the calculator gives the exact selling price that delivers it, plus the rupees of profit per unit. Price with confidence instead of guessing.

  1. Enter the item's true cost per unit (purchase + transport) in the Cost price field.
  2. Enter the margin percentage you want to earn on the selling price.
  3. Click Calculate to see the required selling price in rupees.
  4. Set your price at or above that figure; the profit-per-unit line shows what you will earn.

Formula

Selling price = Cost ÷ (1 − Target margin ÷ 100). Profit = Selling price − Cost. Note: cost × 1.30 gives a 30% markup but only a 23.1% margin — the divisor formula is the correct one for margin targets.

Worked example

Cost Rs 800 with a 30% margin target: selling price = 800 ÷ (1 − 0.30) = 800 ÷ 0.70 = Rs 1,143. Profit = Rs 343 per unit. Simply adding 30% would price it at Rs 1,040 — a margin of only 23%.

Frequently asked questions

Because margin is measured on the selling price, not cost. Rs 1,040 on Rs 800 cost gives Rs 240 profit, and 240 ÷ 1040 = 23.1%. To earn 30% of the selling price, you must divide by 0.70.

Use markup when setting prices from cost sheets; use margin when judging profitability and comparing with industry benchmarks, which are almost always quoted as margins.

Pakistani wholesalers often work on 5–12% margins with high volume; retailers target 15–40% depending on the category. Fast-moving staples accept thinner margins.

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