Profit Margin Calculator
Calculate profit margin, markup percentage, and profit amount. Enter cost price and selling price to see your margin.
Profit
How to use the Profit Margin Calculator
- Enter the cost price.
- Enter the selling price.
- Click Calculate to see profit, margin and markup.
- Use margin to compare with industry benchmarks.
Formula used
Worked example
Cost ₹400, selling price ₹500
Profit = ₹100
Margin = 100 ÷ 500 = 20%
Markup = 100 ÷ 400 = 25%
Margin vs markup
Markup is based on cost; margin is based on selling price, so margin is always the smaller number. A common pricing mistake is adding a 30% markup and believing the margin is 30% — it is only 23%. To reach a target margin, use: Price = Cost ÷ (1 − margin). For a 30% margin on a ₹400 cost, the price is ₹571.
Tips for accurate results
- Include shipping, packaging and payment fees in cost price.
- Compare margins before and after GST consistently.
- Gross margin excludes overheads like rent; net margin includes them.
Frequently Asked Questions
It varies: grocery retail may run on 2–5% net, while software can exceed 20%.
Divide cost by 0.6.
No, but markup can.
Related Calculators
Content reviewed by Vinod, Easy Smart Calculator · Last updated October 2026
Margin vs Markup
Profit Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost price.
Margin % = (Profit/SP) × 100
Markup % = (Profit/CP) × 100