Profit Margin Calculator: Margin %, Markup % and Selling Price
Enter what an item costs you and what you sell it for. You see the profit, the margin on the selling price and the markup on cost.
- Nothing you type is stored
- Free
- No signup
Profit margin
20%
- Profit per item
- ₹200.00
- Markup
- 25%
Show working
- (1000.00 − 800.00) ÷ 1000.00 × 100 = 20.00%
How to use
- Choose whether you want the margin or the selling price for a target margin.
- Enter your cost per item (and the selling price, or the margin you want).
- Add a quantity under More options to see the total profit.
Good to know
Margin = (selling price − cost) ÷ selling price × 100. Markup = (selling price − cost) ÷ cost × 100. An item bought for ₹800 and sold for ₹1,000 has a 20% margin but a 25% markup. Mixing the two up is the most common pricing mistake.
To hit a target margin, price = cost ÷ (1 − margin). For a 25% margin on ₹800 you need ₹1,066.67, not ₹1,000. A margin can never reach 100%, because that would need an infinite price.
Use prices without GST on both sides, because GST you collect is passed on to the government. Include freight, packing and platform fees in the cost if you want a true margin. This is an estimate for planning, not financial advice.
Questions
What is the difference between margin and markup?
Margin compares profit with the selling price; markup compares it with the cost. 25% markup equals a 20% margin.
What is a good profit margin?
It depends on the trade. Grocery retail often runs on 5–15%, clothing and electronics accessories on 30–50%. Compare with others in your business.
Should I include GST?
No. Use the price before GST and the cost before input GST if you claim input tax credit.
How do I price for a 30% margin?
Divide the cost by 0.70. A ₹700 cost needs a ₹1,000 price.
Is my data saved?
No. Everything is worked out on your device.