Markup vs Margin — what's the difference?

50% markup on ₹400 = sell at ₹600. The MARGIN is (200/600) = 33.3%. Markup is based on cost; margin is based on selling price.

How to find selling price from markup?

SP = CP × (1 + Markup%/100). For 40% markup on ₹500: SP = 500 × 1.40 = ₹700.

Markup Formula — Calculate Selling Price from Cost

Markup is the amount added to cost price to determine selling price. It's different from margin and understanding the distinction is crucial for pricing.

Markup Percentage Formula

Markup % = ((Selling Price - Cost Price) / Cost Price) × 100

Where:

Markup % = Percentage added to cost
SP = Selling Price
CP = Cost Price

Step-by-Step:

1
Find the difference
SP - CP = Markup amount.
2
Divide by cost price
Markup / CP.
3
Convert to percentage
Multiply by 100.

Worked Examples:

Retail pricing

CP: ₹400SP: ₹600

Result: 50% markup

Markup = (600-400)/400 × 100 = 50%