Selling Price Calculator – Set Your Price from Cost, Margin and GST

Cost price per unit (₹)

Other cost per unit (₹, optional)

I want to set my profit as

Profit percentage

GST rate (%, optional)

Discount you will offer (%, optional)

Margin is profit as a share of the selling price. Markup is profit as a share of your cost, so the same profit looks bigger as a markup.

How to set a selling price

The right selling price covers your cost, pays the tax, leaves the profit you want, and still works after any discount you plan to give. This calculator starts from your cost and a target margin or markup, adds GST, and tells you the price to charge and the list price to print if you will sell at a discount.

Formulas

Selling price from a margin = total cost ÷ (1 − margin%).

Selling price from a markup = total cost × (1 + markup%).

Price including GST = price × (1 + GST%). List price = price including GST ÷ (1 − discount%).

Worked example

A product costs ₹600 and packaging adds ₹50, so the total cost is ₹650. You want a 25% margin. The selling price is 650 ÷ 0.75 = ₹866.67, a profit of ₹216.67. With 18% GST the customer pays ₹1,022.67.

If you plan a 20% discount, print a list price of 1,022.67 ÷ 0.80 = ₹1,278.33. After the discount the customer still pays ₹1,022.67.

For comparison, a 25% markup on the same cost gives only ₹812.50, which is a margin of 20%.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit divided by the selling price. Markup is profit divided by cost. A 25% margin equals a 33.3% markup, and a 25% markup equals a 20% margin.

Why can't the margin be 100%?

Margin is a share of the selling price, so it can approach 100% but never reach it, because you would be selling at an infinite price. Use markup if you think in terms of cost.

Is GST part of my profit?

No. GST is collected for the government. Your profit is calculated on the price before GST, which is why this tool shows both.

Why print a higher list price if I give a discount?

Because the discount comes off the list price. If you want to receive a fixed price after a discount, you have to start higher. The calculator works that out.

Which costs should I include?

Include everything you spend to get one unit sold: the product cost, packaging, shipping you pay, payment fees and your share of rent or software. Entering them under cost keeps the profit figure honest.

Results are estimates for information only and are not financial, tax or legal advice.