Profit Margin Calculator
Calculate profit, markup and margin for your products or services.
Enter Details
Country / Region
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₹
Calculation Result
Cost Price₹850.00
Selling Price₹1,300.00
Gross Margin34.62%
Markup52.94%
Profit per Unit₹450.00
Pro Tip:A 50% markup is only a 33% margin. Quote margin to investors and markup to your pricing team — and never mix them up.
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How it worksKey Rules & Regulations
View Full GuideA 50% markup is only a 33% margin. Quote margin to investors and markup to your pricing team — and never mix them up.
Key Points for Every Country
- Gross margin = (Selling price − Cost) ÷ Selling price × 100.
- Markup = (Selling price − Cost) ÷ Cost × 100 — it is always higher than margin for the same item.
- Price tax-exclusive: calculate margin on the net price, then add GST/VAT/sales tax on top.
- Include freight, packaging and payment fees in cost for a true landed margin.
Good practice
- Review margins per product, not just overall.
- Set a minimum acceptable margin and price new products against it.
- Revisit prices when input costs rise more than 5%.
- Track discounting — a 10% discount can halve a 20% margin.
- Use the target-margin mode to set prices from cost.
Related tools
All toolsCommon questionsFrequently Asked Questions
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. A product that costs 100 and sells for 150 has a 50% markup but a 33.3% margin.