Profit Margin & Markup Calculator
Work out the right selling price and see your margin and markup side by side. Estimate only
How it works
How to use the margin & markup
Margin and markup are often confused, and the mix-up costs money. Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. If something costs ₹400 and sells for ₹600, the profit is ₹200, the markup is 50% and the margin is 33.3%.
To hit a target margin, divide cost by (1 − margin). A 40% margin on a ₹400 cost needs a ₹666.67 price, not ₹560 (which is a 40% markup). Choose what you know (selling price, desired margin or markup) and the calculator fills in the rest.
Use cost per unit including materials, packaging, delivery and platform fees for a realistic picture. Keep GST separate: calculate margin on the price before tax, then add GST with the GST calculator.
- Enter the cost per unit.
- Choose whether you know the selling price, a target margin or a markup.
- Type the value.
- Read the price, profit, margin and markup.
FAQ
Questions about this tool
What is the difference between margin and markup?
Markup = profit ÷ cost. Margin = profit ÷ selling price. The same sale always has a higher markup % than margin %.
How do I price for a 30% margin?
Selling price = cost ÷ (1 − 0.30). For a ₹700 cost that's ₹1,000.
Should GST be included?
No. Work out margin on the price before GST, then add GST on top.
What is a good profit margin?
It varies widely by industry and business model, so compare with your own costs and similar businesses rather than a single number.
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