Profit Margin Calculator

Cost Price (₹) Selling Price (₹)

About this Profit Margin Calculator tool

Profit margin shows how much of your selling price is profit. Markup shows how much you add on top of cost. They are often confused: for the same sale, markup is always higher than margin. Use this calculator to work out margin, markup and profit from your cost and selling price.

How to use it

Enter your cost and your selling price.
Click Calculate.
Read the profit, margin % and markup %.

Example

Margin = (Selling price − Cost) ÷ Selling price × 100
Markup = (Selling price − Cost) ÷ Cost × 100

Cost ₹600 and selling price ₹800: profit is ₹200, margin is 25% and markup is about 33.33%.

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 the cost.

What is a good profit margin?

It varies by industry. Compare with similar businesses, and consider your overheads.

Is this gross or net margin?

It uses only the cost you enter. For net margin, include all expenses such as rent, salaries and taxes.