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How-to guide

How to Calculate Markup: Formula, Steps & Examples

Learn how to calculate Markup — the formula explained step by step, with worked examples and a free calculator to check your answer.

By Priya Nair, MBA, Finance & Strategy · Updated Jun 2026 · 2 min read

Calculating your selling price is straightforward once you know the Markup formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Markup Calculator.

What is Markup?

The Markup calculation tells you your selling price from a few simple inputs. The figure you are solving for here is the selling price, expressed in INR.

The Markup formula

The core formula is:

Selling price = Cost price + Cost price × Markup ÷ 100

Here is what each input means:

  • Cost price — a money amount. Example: ₹800.
  • Markup — a percentage, such as an annual rate. Example: 25%.

How to calculate it step by step

  • Write down the cost price (for example, ₹800).
  • Write down the markup (for example, 25%).
  • Apply the formula above to get your selling price.
  • Double-check the result with the Markup Calculator.

Worked examples

Example 1

Input / OutputValue
Cost price₹800
Markup25%
Selling price₹1,000.00
Profit₹200.00
Equivalent margin20.00%

With cost price of ₹800 and markup of 25%, the selling price works out to ₹1,000.00.

Example 2

With cost price of ₹1,600 and markup of 25%, the selling price works out to ₹2,000.00.

ResultValue
Selling price₹2,000.00
Profit₹400.00
Equivalent margin20.00%

Example 3

With cost price of ₹400 and markup of 25%, the selling price works out to ₹500.00.

ResultValue
Selling price₹500.00
Profit₹100.00
Equivalent margin20.00%

Tips for an accurate result

  • Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
  • Round only at the very end. Rounding inputs early can shift the final answer noticeably.
  • Re-run the numbers whenever an input changes, rather than estimating from an old result.

Prefer not to do the maths by hand? — the Markup Calculator does it instantly, for free, with the formula and a worked example built in.

Continue exploring business calculators with these tools: Discount Calculator, Price Elasticity of Demand Calculator, Profit Margin Calculator, Gross Profit Calculator, ROI Calculator.

Calculators in this guide

Frequently asked questions

The formula is: Selling price = Cost price + Cost price × Markup ÷ 100. With cost price of ₹800 and markup of 25%, the selling price works out to ₹1,000.00.

Gather each input, apply the formula step by step keeping your units consistent, and round only at the end. You can verify your answer instantly with the Markup Calculator.

It uses the standard formula with exact arithmetic, so the result is correct for the inputs you enter. Bear in mind that real-world outcomes can still differ when underlying assumptions change.

The selling price is expressed in INR. Make sure your inputs use matching units so the result is correct.

Priya Nair · MBA, Finance & Strategy

Priya Nair is a business analyst and MBA who advises small businesses and startups on pricing, unit economics and growth metrics.