Profit Margin Calculator

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Find profit, margin and markup from cost and price, or the price that gives a target margin.

How to use
Calculate

Result

Enter the values above to see the result.

How to use

  1. Choose what to calculate: the margin from cost and price, the selling price from cost and a target margin, or the cost from price and margin.
  2. Enter the two known values.
  3. Read the result. Profit, margin and markup are shown together, with the working.
  4. Copy or print the result.

Method

  • Profit = selling price − cost.
  • Margin % = profit ÷ selling price × 100.
  • Markup % = profit ÷ cost × 100.
  • Selling price from a target margin = cost ÷ (1 − margin ÷ 100).
  • Cost from price and margin = selling price × (1 − margin ÷ 100).

The rule is round money first, then percentages. Cost and selling price are rounded to two decimal places (half-up) first. Profit is calculated from those rounded amounts, and margin and markup are calculated from the rounded profit and amounts, then rounded to two decimal places. The figures you see therefore always reconcile: profit is exactly the selling price minus the cost as displayed.

Worked example

Buying at ₹80 and selling at ₹100:

Input
Calculate Margin from cost & price
Cost ₹80.00
Selling price ₹100.00
Result
Margin 20.00%
Selling price ₹100.00
Cost ₹80.00
Profit ₹20.00
Markup 25.00%

FAQ

What is the difference between margin and markup?

Both compare profit with something else. Margin compares profit with the selling price; markup compares it with the cost. Buying at ₹80 and selling at ₹100 gives a profit of ₹20 — a 20% margin (20 ÷ 100) but a 25% markup (20 ÷ 80). For a profitable sale, markup is always higher than margin.

Why can't the margin be 100% or more?

Margin is profit as a share of the selling price. A 100% margin would mean the whole price is profit and the cost is zero; anything above 100% would need a negative cost. When you solve for a price or a cost, a margin of 100% or more has no answer, so the tool asks for a lower value.

What does a negative margin mean?

A negative margin means you are selling below cost, at a loss. For example, a cost of ₹100 and a selling price of ₹80 give a profit of −₹20, a margin of −25% and a markup of −20%.

Does this include GST?

No. Enter cost and selling price on the same basis, normally both excluding GST. To add or remove GST, use the GST Calculator.

Is this pricing, tax or accounting advice?

No. The calculator does the arithmetic and shows every step so you can check it. Confirm prices, tax treatment and accounting figures with your accountant before you rely on them.

References

  • Standard definitions: margin = profit ÷ selling price; markup = profit ÷ cost.