Profit Margin Calculator - Calculate Margin & Markup
Calculate profit margin, markup percentage, and net profit instantly. Essential tool for businesses to price products correctly.
Calculate Profit Margin
Your cost to acquire/produce the item
Price at which you sell the item
Profit
₹2,500
Profit Margin
33.33%
Markup
50.00%
Formula & Explanation
Profit Margin = ((Selling Price - Cost Price) / Selling Price) × 100Profit Margin is the percentage of selling price that is profit. Markup = ((Selling Price - Cost Price) / Cost Price) × 100. Margin is always lower than markup for the same transaction.
Calculation Examples
50% Markup
Cost ₹5,000, Sell ₹7,500
Profit: ₹2,500 | Margin: 33.3% | Markup: 50%
Benefits
- Price products correctly
- Understand profitability
- Compare margin vs markup
- Business planning
Use Cases
- Product pricing
- Retail business
- E-commerce
- Wholesale
- Service pricing
About Profit Margin Calculator
Our Profit Margin Calculator helps businesses determine the right selling price by calculating profit margin and markup percentage. Understand the difference between margin and markup, and price your products for maximum profitability.
Frequently Asked Questions
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost price. For example, buying at ₹100 and selling at ₹150 gives 33.3% margin but 50% markup.
Good profit margins vary by industry. Retail typically has 2-5% net margin, software 20-30%, and luxury goods 10-20%. A healthy gross margin is generally above 50%.