Margin and markup answer different questions from the same two numbers, and using one where the other is expected is a common pricing mistake. This tool covers margin and markup from a cost and selling price, rolls shipping and duty into a true per-unit landed cost, and works backward from a target margin to the selling price it requires.
Margin vs markup
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost price. A ₹300 profit on a ₹500 cost item is a 60% markup, but only a 37.5% margin against the ₹800 selling price. Same rupee profit, two different percentages, because the denominator changes.
Why landed cost matters
Product cost on its own understates what an item costs to sell. Shipping and freight, customs duty, and per-unit fees for insurance, handling and packaging all eat into real margin when they're left out of the calculation. Landed cost rolls all of it into one per-unit number before you set a price against it.
Working backward from a target margin
If you know your cost and want a specific margin, the selling price is not cost plus that percentage. Dividing by (1 - margin/100) accounts for the fact that margin is measured against the selling price, not against the cost. Markup math here would undershoot the price you need.
Frequently asked questions
Why is my margin lower than the markup I set?
Markup is calculated on cost; margin is calculated on selling price, which is always the larger number whenever there's a profit. A 50% markup on cost works out to a 33.3% margin on the selling price. Both are correct, and they answer different questions.
Should GST be included in the cost or selling price I enter here?
Keep this calculator working in pre-tax (base) amounts and use the GST Calculator separately for the tax itself. Mixing GST into a margin calculation makes the margin percentage harder to sanity-check against your real cost structure.
Ecommerce & Catalog Cluster
Often used together when preparing marketplace listings - see the full workflow.
GTIN Converter
Convert product codes between GTIN-8, GTIN-12 (UPC-A), GTIN-13 (EAN-13) and GTIN-14, validate check digits, and normalise a whole catalog in bulk.
EAN / UPC Generator
Generate valid-checksum EAN-13, EAN-8, UPC-A and GTIN-14 product codes in bulk for test catalogs, and validate the check digit of any existing code.
Barcode Generator
Render a scannable EAN-13, UPC-A, CODE128 or ITF-14 barcode from a product code and download it as a PNG for labels and store listings.
SKU Generator
Generate consistent SKU codes in bulk from a custom pattern with variant permutations, sequential numbering and collision checking.
Product CSV Validator
Check a product CSV for missing columns, broken variant handles, duplicate SKUs, invalid barcodes and bad prices before you import it.
Marketplace Image Checker
Check product images against each marketplace's dimension, aspect ratio, file size and format rules before you upload them.
ISBN / ASIN Validator
Validate ISBN-10 and ISBN-13 check digits, convert between them, and check Amazon ASIN format in bulk.
IBAN Generator
Generate format-valid, checksum-correct IBAN numbers for any supported country for testing and QA, and validate the checksum of any IBAN.
GST Calculator
Add or remove GST at any standard slab rate, split into CGST/SGST for intra-state supply or IGST for inter-state supply.
Discount Calculator
Work out stacked/sequential discounts, a Buy-X-Get-Y-free offer's real effective discount, and whether a bundle price beats buying items individually.
Shipping Cost Calculator
Work out volumetric vs actual chargeable weight and the total shipping cost from your own courier's rate card, including fuel surcharge and COD fees.
COD & RTO Cost Calculator
Work out your own RTO rate, what a single return-to-origin actually costs, and how COD's net revenue per order compares to a discounted prepaid option.
Marketplace Fee Calculator
Enter your marketplace's commission, payment gateway, and shipping fees to see the real net payout and margin behind a listing price.
Related Utilities You Might Need
Stack Selector
Select your project scope, budget, and features to instantly receive a vetted, modern tech stack and service recommendation.
IBAN Generator
Generate format-valid, checksum-correct IBAN numbers for any supported country for testing and QA, and validate the checksum of any IBAN.
EAN / UPC Generator
Generate valid-checksum EAN-13, EAN-8, UPC-A and GTIN-14 product codes in bulk for test catalogs, and validate the check digit of any existing code.