Pricing Calculator (Markup vs Margin) (India 2026): Free Sheet + Examples | Startup Made Simple

Introduction: Most Businesses Underprice Because They Confuse Markup and Margin

Many beginners say:

“Bro I keep 30% profit.”

But they don’t know if it’s:
✅ markup
or
✅ margin

And that small confusion can destroy profit.

This post gives you:
✅ a free pricing calculator format
✅ formulas for Excel/Google Sheets
✅ real examples (India business style)

Works for:
✅ tiffin/food business
✅ services (salon, repair, car wash)
✅ reselling/ecommerce
✅ freelancers/agencies

📌 Part of the series:
➡️ Startup Made Simple Hub Page (internal link)

---

✅ Markup vs Margin (Super Simple Meaning)

✅ Markup

Markup = profit % on COST

✅ Formula:
Markup % = Profit ÷ Cost × 100

Example:
Cost = 100
Sell = 150
Profit = 50
Markup = 50%

---

✅ Margin

Margin = profit % on SELLING PRICE

✅ Formula:
Margin % = Profit ÷ Selling Price × 100

Example:
Cost = 100
Sell = 150
Profit = 50
Margin = 33.33%

📌 Same sale, different % — this is where people get confused.

➡️ Related:
Pillar 4 – Post 3: Markup vs Margin (Detailed) (internal link)

---

✅ Free Pricing Calculator (Google Sheets / Excel Format)

Create a sheet with these columns:

A: Product/Service
B: Cost Price (CP)
C: Selling Price (SP)
D: Profit
E: Markup %
F: Margin %

---

✅ Formulas (Copy-Paste)

Assume first row is in row 2:

✅ Profit (D2)

=C2-B2

✅ Markup % (E2)

=(D2/B2)*100

✅ Margin % (F2)

=(D2/C2)*100

📌 Format E and F as % or keep as numbers.

---

✅ Example Table (Fill Like This)

Example: Tiffin business

Product: 1 Lunch Tiffin
CP: 120
SP: 200
Profit: 80
Markup: 66.67%
Margin: 40%

✅ Meaning:
You earn ₹80 profit per order, which is:
✅ 66.67% markup on cost
✅ 40% margin on selling price

---

✅ Reverse Calculator: “What Selling Price Should I Keep?”

Sometimes you know cost and want to target a margin.

✅ If you want a target Markup %

✅ Formula:
SP = CP × (1 + Markup%)

Example:
CP = 120
Markup target = 50%
SP = 120 × 1.5 = 180 ✅

---

✅ If you want a target Margin %

✅ Formula:
SP = CP ÷ (1 − Margin%)

Example:
CP = 120
Margin target = 40%
SP = 120 ÷ 0.60 = 200 ✅

📌 This formula is the secret of smart pricing.

---

✅ Pricing Rule for Beginners (Simple & Safe)

✅ Always price using:

✅ Cost per order/service

• ✅ desired profit per order
• ✅ return/complaint buffer (if needed)

➡️ Related:
Pillar 4 – Post 4: Unit Economics (internal link)
Pillar 7 – Post 5: Break-even Calculator (internal link)

---

✅ Pricing Examples by Business Type

✅ Example 1: Reselling product

CP = 500
Target margin = 25%
SP = 500 ÷ 0.75 = 667

So safe price:
✅ ₹669 or ₹699 (psychological pricing)

---

✅ Example 2: Service business (car wash)

Cost per wash (soap + travel) = 60
Desired profit = 100
Minimum SP = 160 ✅

Then convert into subscription:
4 washes/month = ₹640
Round to:
✅ ₹599 / ₹649 / ₹699 based on market

➡️ Related:
Pillar 6 – Post 10: Offer Building (internal link)

---

✅ Example 3: Freelancing service

Cost is time-based, not raw materials.

Your “cost” includes:
✅ hours × your minimum rate
✅ internet/tools
✅ revisions time

Example:
5 hours work
Minimum rate ₹300/hr
Cost = ₹1500
Target margin 40%
Selling price = 1500 ÷ 0.60 = 2500 ✅

---

✅ Common Pricing Mistakes This Sheet Prevents

❌ pricing by copying competitors blindly
❌ charging low because “new business”
❌ confusing markup as margin
❌ ignoring delivery/packaging cost
❌ not leaving buffer for mistakes/returns

---

✅ Quick Checklist Before Finalizing Price

✅ do I know my cost clearly?
✅ is profit per order positive?
✅ can I handle 1 return/complaint without loss?
✅ does price support monthly fixed costs?
✅ is price easy to communicate?

---

✅ Free Resources (Startup Made Simple Toolkit)

📌 Coming next in Pillar 7:

✅ Follow-up Scripts Pack (WhatsApp/Calls)
✅ Instagram Content Planner Template
✅ 30-Day Business Launch Planner

➡️ (Internal Link) Pillar 7 – Templates & Tools Library (coming soon)

---

✅ Recommended Next Reads (3 only)

➡️ Pillar 4 – Post 4: Unit Economics (internal link)
➡️ Pillar 7 – Post 5: Break-even Calculator Sheet (internal link)
➡️ Pillar 7 – Post 8: Customer Follow-up Scripts Pack (Free) (next) ✅

---

Conclusion: Correct Pricing = Profit + Confidence + Business Stability

When you understand markup vs margin:

✅ you stop undercharging
✅ you negotiate less
✅ you build stable profit
✅ your business survives long-term

That’s Startup Made Simple ✅

About the Author

Manish Kumar is an independent education and career writer who focuses on simplifying complex academic, policy, and career-related topics for Indian students.

Through Explain It Clearly, he explores career decision-making, education reform, entrance exams, and emerging opportunities beyond conventional paths—helping students and parents make informed, pressure-free decisions grounded in long-term thinking.