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.

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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