What Is a Good Profit Margin?
As a rough rule, a net profit margin around 10% is considered average, 20% or more is good, and under 5% is low — but it varies widely by industry. Margin is the share of revenue left as profit after costs.
Markup Calculator
Verified formula Updated Jun 2026 Private — runs on your device
Verified formula
Private
Selling price
₹1,000.00
- Profit
- ₹200.00
- Equivalent margin
- 20.00%
For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.
How to use the Markup Calculator
The Markup Calculator works out your selling price, along with 2 related figures in an instant. Enter cost price and markup and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.
- Enter the cost price.
- Enter the markup.
- Read off your selling price, together with profit and equivalent margin — the calculator updates automatically, with no button to press.
Formula
The Markup Calculator uses the formula:
Selling price = Cost price + Cost price × Markup ÷ 100
Worked example
For example, with cost price of ₹800 and markup of 25%, the selling price is ₹1,000.00.
| Cost price | ₹800 |
|---|---|
| Markup | 25% |
| Selling price | ₹1,000.00 |
|---|---|
| Profit | ₹200.00 |
| Equivalent margin | 20.00% |
Results are estimates for educational use, not professional advice.
Key terms explained
- Markup
- The amount added to cost to set the selling price, expressed as a percentage of cost.
Frequently asked questions
Markup is profit as a percentage of cost. Selling price = cost + cost × markup ÷ 100. For a ₹800 item with 25% markup, the selling price is ₹1,000 and the profit is ₹200.
Markup is measured against the cost price, while margin is measured against the selling price. A 25% markup equals a 20% margin, because the same profit is a smaller share of the higher selling price.
Margin = markup ÷ (100 + markup) × 100. This calculator shows the equivalent margin automatically so you can quote whichever your business uses.
It depends on your costs, competition and overheads. Set it high enough to cover all expenses and leave profit after discounts, returns and taxes.
Enter the cost price. Enter the markup. Read off your selling price, together with profit and equivalent margin — the calculator updates automatically, with no button to press.
Related guides
Profit Margin vs Markup: What's the Difference?
Margin and markup are easy to confuse but mean very different things — and mixing them up can quietly destroy your pricing. Here's how each works, how to convert between them, and how to price for profit.
Markup Table: Selling price by Cost price
Reference table of selling price for Markup across a range of cost price values — exact, engine-computed figures you can read off at a glance.
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.