Profit Margin Calculator
Margin and markup are often confused, and pricing on the wrong one quietly costs money. Enter your cost and price to see both, or enter a target margin to get the price you should charge.
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Quick answer
Profit margin = (selling price − cost) ÷ selling price × 100. Markup = (selling price − cost) ÷ cost × 100. A product costing ₹60 sold at ₹100 has a 40% margin and a 66.67% markup.
How to use the Profit Margin Calculator
- Choose a mode: "From cost & price" or "Price for target margin".
- Enter cost and selling price, or cost and target margin %.
- Read margin, markup and profit per unit.
Worked example
Cost ₹450, target margin 30%: price = 450 ÷ (1 − 0.30) = ₹642.86. Profit ₹192.86, markup 42.86%.
Formula
Margin % = (Price − Cost) ÷ Price × 100 Markup % = (Price − Cost) ÷ Cost × 100 Price for margin m = Cost ÷ (1 − m ÷ 100)
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup is only a 33.3% margin.
Should margin be calculated before or after GST?
Use prices excluding GST. GST collected is not your revenue; you pass it to the government.
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