Business & pricing
Selling Price & Markup Calculator
Decide what to charge. Enter your cost and the margin or markup you want, add tax if needed, and get a rounded shelf price that is ready to print on a label.
How to use the Selling Price & Markup Calculator
- Enter the cost price.
- Enter the percentage and choose if it is a margin or a markup.
- Add sales tax if the shelf price must include it.
- Pick how to round the final price.
Formula
Example
Cost Rs 1,200 with a 25% margin gives a price of Rs 1,600. With a 25% markup it is Rs 1,500.
Pricing by margin or by markup
Pricing by markup adds a share of the cost: cost Rs 800 with 25% markup gives Rs 1,000. Pricing by margin works backwards from the price: to keep 25% of the price as profit you must sell at Rs 1,066.67. Shops that think in margin protect their profit better when costs rise.
Check the price against the market
A price that gives you the right margin still has to sell. Look at what nearby shops and online sellers charge. If the market price is lower, look for a cheaper supplier, a bigger pack size or a product with more value rather than cutting your margin to nothing.
Rounding for the shelf
Customers remember prices like Rs 499, Rs 950 or Rs 1,200 more easily than Rs 1,066.67. Round up to a clean price after you work out the minimum. Rounding up usually adds a little margin without hurting sales.
Read the guide
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Frequently asked questions
Why does a 25% margin give a higher price than a 25% markup?
Margin is measured on the selling price, which is larger than the cost, so you need a higher price to reach the same percentage.
What markup gives a 20% margin?
A 25% markup gives a 20% margin. The formula is markup = margin ÷ (1 − margin).
Should I include GST in the shelf price?
For retail customers, yes: show the price they will pay. Record the tax separately in your books.
Results are estimates for planning. For tax, legal or religious decisions, confirm with a qualified person. Your inputs stay in your browser and are not sent to Soft2Cloud.