Profit Margin & Markup Calculator

Work out profit, margin and markup from cost and price — or the selling price you need for a target margin.

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What do you know?
₹1₹1,00,000
₹1₹2,00,000
010,000
Profit margin—
Selling price
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Profit per unit
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Margin
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Markup
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Total profit
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Profit margin calculator

Whether you run a kirana store, sell on Meesho or Amazon, or price your freelance work, knowing your margin is essential. This profit margin calculator shows profit, margin and markup from your cost and selling price — or works out the price you should charge to hit a target margin or markup — and multiplies it out for the number of units you sell.

How to use it

  1. Choose what you know: cost and price, cost and a target margin, or cost and a markup.
  2. Enter the values (excluding GST).
  3. Optionally enter how many units you sell to see total profit.

Formulas

Margin = (Price − Cost) ÷ Price · Markup = (Price − Cost) ÷ Cost · Price for margin = Cost ÷ (1 − margin)

Example

A seller buys kurtis at ₹700 and sells them at ₹1,000: profit ₹300, a30% margin and a 42.9% markup. Selling 100 a month earns ₹30,000 before other costs. To find how many you must sell to cover rent and salaries, use the break-even calculator; for discounts during a sale, the discount calculator.

Disclaimer: Results are estimates for educational purposes only and are not financial, investment or tax advice. Please verify with your bank, broker or a SEBI-registered adviser before acting. Read the full disclaimer.

Frequently asked questions

What is the difference between margin and markup?
Both measure profit, but against different bases. Margin = profit ÷ selling price; markup = profit ÷ cost. Buying at ₹80 and selling at ₹100 is a 20% margin but a 25% markup.
How do I set a price for a target margin?
Price = Cost ÷ (1 − margin ÷ 100). For a 30% margin on an item costing ₹700: 700 ÷ 0.7 = ₹1,000. Adding 30% to cost (₹910) would only give a 23% margin — a common pricing mistake.
Should GST be included?
Calculate margins on prices excluding GST. For a GST-registered business, GST collected is passed to the government (after input tax credit), so it isn’t profit.
What is a good profit margin?
It varies widely by business: groceries and electronics retail often run on single-digit margins, while restaurants, clothing, software and services can have much higher gross margins.

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