Free Profit Margin and Markup Calculator
Work out profit, margin and markup from your cost and selling price, or find the right selling price for the margin or markup you want. Includes GST-aware pricing tips for Indian businesses.
How to use the profit margin calculator
- Choose a mode. Use “Cost and price” to check an existing price, or “Target margin” and “Target markup” to set a new one.
- Enter your cost per unit, including the product cost, packaging and delivery you pay for.
- Enter the price or your target, and optionally the number of units you expect to sell.
- Read the results and the price table for common margins.
Margin vs markup
| Formula | Cost ₹600, price ₹1,000 | |
|---|---|---|
| Profit | Price - cost | ₹400 |
| Margin | Profit / price x 100 | 40% |
| Markup | Profit / cost x 100 | 66.7% |
Margin is measured against the selling price and markup against the cost. Mixing them up is one of the most common pricing mistakes. If you add a 40% markup thinking it is a 40% margin, your real margin is only 28.6%.
Pricing tips for small businesses
- Include every cost: delivery, packaging, payment gateway fees, marketplace commission and returns.
- Calculate margin on the price before GST. GST is collected for the government and is not your income. Use the GST calculator to separate it.
- Leave room for ads and discounts. If you spend on marketing, check your numbers with the ROI calculator.
- Find how many units you must sell to cover fixed costs with the break-even calculator.
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Frequently Asked Questions
Is this profit margin calculator free?
Yes. It is free with no sign-up, and your numbers stay in your browser.
How do I calculate profit margin?
Subtract the cost from the selling price to get profit, then divide the profit by the selling price and multiply by 100.
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. The same sale always has a higher markup than margin.
How do I find the selling price for a 30% margin?
Divide the cost by 0.7. For a cost of ₹700, the price is ₹1,000. Choose Target margin in the tool to do this automatically.
Should I include GST in the price?
Calculate margin on the price before GST, then add GST on top for the customer price.