Markup vs Margin — What's the Difference?
Convert between markup percentage and profit margin. Calculate selling price from cost and desired margin.
फर्क
Markup = profit/cost। Margin = profit/selling price। Cost ₹60, sell ₹100: markup 66.7%, margin 40%। NEVER same! 100% markup = 50% margin। Indian retail: 50-200% markup typical। Kirana stores: 10-30%।
By Industry
Restaurant: 200-400%। Clothing: 100-300%। Grocery/kirana: 10-30%। Software: 60-90% margin। Chai stall: 300-500% markup (₹2 cost, ₹10-15 sell!)।
A 1% price increase on a business with 10% net margins increases profit by 10% — without selling a single additional unit. Pricing is the most powerful profit lever available to any business. Most small businesses underprice because they calculate markup instead of margin, or because they fear losing customers over small price increases.
