Free Tool — Markup Calculator
Markup Calculator
Enter your cost and target markup % to get the selling price you should charge.
Selling price
₹140.00
Profit per unit
₹40.00
Resulting margin
28.6%
Pricing from cost upward
Cost-plus pricing — taking your cost and adding a fixed markup — is the simplest way to price a new product or menu item. The hard part is doing it consistently across dozens of SKUs or dishes without a calculator open in another tab for every one.
This tool flips the usual margin question around: instead of checking the margin on a price you've already picked, you tell it the markup you want and it gives you the price to charge, along with the profit per unit at that price.
Markup formula
Selling price = Cost price × (1 + Markup % ÷ 100). Profit per unit = Selling price − Cost price. Resulting margin % = Profit per unit ÷ Selling price × 100.
How to use the markup calculator
- 1Enter the cost price of one unit, including freight and packing, or the plate cost of a dish.
- 2Enter your target markup %.
- 3Read the selling price, the profit per unit and the resulting margin %.
- 4Round the selling price to a price point that suits your shelf or menu, then check the rounded price in the profit margin calculator.
- 5Repeat for each product, keeping the same markup within a category so prices stay consistent.
Worked example: pricing kaju katli at a 65% markup
A sweet shop works out that one kilo of kaju katli costs ₹720 to make, counting cashews, sugar, varq, gas, labour and the box. With a 65% markup, the markup calculator gives a selling price of ₹1,188 (720 × 1.65), a profit of ₹468 per kilo and a resulting margin of 39.4% (468 ÷ 1,188 × 100). On the price board the shop might round that to ₹1,190 or ₹1,200 a kilo.
Suppose the owner thinks in margin instead and wants 30%. The markup needed is 30 ÷ (100 − 30) × 100 = 42.86%. Entering 42.86% gives a selling price of ₹1,028.59 and a profit of ₹308.59 per kilo, and the resulting margin shows 30%. Converting the target margin first stops you from pricing at a 30% markup and ending up with only a 23% margin. This is the core of cost-plus pricing.
Markup tips before you print the price
- Build the full landed cost first: purchase price, freight, loading, packing and expected breakage or wastage.
- Use a higher markup on slow-moving, fragile or perishable items to cover the stock that never sells.
- Check what is left after offers and platform commission. A 40% markup cut by a 20% discount leaves only about a 10.7% margin.
- Let competitors' prices set your ceiling. Markup gives you a floor based on cost; what customers will pay decides how far above it you can go.
- When a supplier raises prices, re-apply the same markup % to the new cost. Adding only the rupee increase quietly lowers your margin.
Markup calculator FAQs
Selling Price = Cost Price × (1 + Markup % ÷ 100). For example, a ₹100 cost item with a 40% markup sells at ₹140.
No. A 50% markup on a ₹100 cost gives a ₹150 selling price, which works out to a 33.3% margin, not 50%. Markup and margin are calculated on different bases.
It depends on the category, competition and how much value-add or service comes with the product. Many retailers start in the 30-50% markup range and adjust based on what sells and what the market will bear.
Yes — enter your plate cost as the cost price and your target markup to get a starting menu price, then sanity-check it against the food cost percentage calculator.
No. The calculator adds your markup to the cost you enter and nothing else, so the result is the price before tax. If you are GST-registered and claim input tax credit, enter your cost without GST, then add GST at your item's rate on top of the calculated price. If you show tax-inclusive prices on a menu or shelf label, the final price will be higher than the figure shown here.
Yes. A 100% markup doubles the cost, and anything above that is common for low-cost items such as accessories, beverages or packaged snacks. For example, a 150% markup on a ₹200 cost gives a ₹500 selling price and a ₹300 profit, which the calculator shows as a 60% resulting margin.
MRP, the maximum retail price, is the highest price at which a packaged product may be sold. The manufacturer, packer or importer prints it on the pack, and it includes all taxes. Markup is what you add on top of your own cost. For packaged goods, the MRP caps how much markup you can take; for loose items, services or dishes there is no MRP, so your markup and the market set the price.
Yes. The calculator follows the currency saved in Setu's free Business Profile tool. Choose your currency there, fill in your business name and save, and the cost field and results on this page switch to that currency's symbol instead of the rupee. The markup arithmetic is the same in any currency.
Price every item with confidence
Setu Dine keeps cost and pricing data together so you can update prices without losing track of margin.
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