# Margin & Markup Calculator | Free Tool | Commmerce™

> Convert between margin and markup. Calculate selling price, profit per unit, and break-even.

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Free Tool 

# Margin & Markup Calculator

 

Convert between margin and markup. Calculate selling price, profit per unit, and break-even.

     Cost price (₹) Selling price (₹)     

#### Related tools

[Margin Calculator](margin-calculator.html)[Pricing Calculator](pricing-calculator.html)[Discount Calculator](discount-calculator.html)[Marketplace Commission](marketplace-commission.html)  **Disclaimer:** This free tool is provided by Commmerce for general informational and estimation purposes only. Results are indicative and may not reflect your exact figures, current tax rates, courier charges, marketplace fees, or regulatory requirements, which change over time and vary by case. Commmerce makes no warranty as to accuracy or completeness and accepts no liability for any loss or decision made based on this tool. Always verify with a qualified professional (chartered accountant, tax advisor, or the relevant official source such as the GST portal or CBIC) before acting.    

## How the Margin & Markup Calculator works

 

Margin and markup both measure profit but against different bases. Margin is profit as a percentage of selling price: Margin % = (Selling price - Cost) / Selling price x 100. Markup is profit as a percentage of cost: Markup % = (Selling price - Cost) / Cost x 100. So the same rupee profit always shows a higher markup than margin, and the tool converts between the two and gives selling price and profit per unit.

 

### Worked example

 

You buy an item for ₹400 and sell it for ₹500. Profit per unit is ₹100, giving a markup of 25% (100/400) but a margin of 20% (100/500). To hit a 30% margin on the same ₹400 cost, you would price it at ₹571 (400 / (1 - 0.30)).

 

## Frequently asked questions

  What is the difference between margin and markup?

Markup is calculated on your cost price, margin on your selling price. A 50% markup equals only a 33.3% margin, so confusing the two makes your business look more profitable than it is.

 How do I set selling price from a target margin?

Use Selling price = Cost / (1 - Margin%). For a ₹400 cost at 25% margin, price = 400 / 0.75 = ₹533.

 Should GST be included in the margin calculation?

Work out margin on the pre-GST (taxable) values, since GST is a pass-through you collect and remit. Mixing GST into cost or price distorts your true margin.

 What is a good retail margin in India?

It varies widely: grocery and FMCG often run thin 3-15% margins, while apparel, footwear, and beauty can see 30-60%. Compare within your own category rather than across.

    

### Set and manage pricing across all stores automatically

 

Commmerce handles price lists, quantity pricing, and customer group pricing. No spreadsheets.

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