Profit Margin Calculator
Calculate your profit margin and markup from cost and selling price, or find the selling price you need to hit a target margin built for retail, ecommerce, and service pricing.
Cost vs Profit Split
See exactly how your selling price splits between covering your cost and generating profit.
Selling Price Breakdown
Cost Price
71.4%
₹1,000.00
Profit
28.6%
₹400.00
How Margin and Markup Are Calculated
Both measure the same profit, but against different bases — margin against selling price, markup against cost price.
Margin & Markup Formulas
Margin
(SP − CP) / SP × 100
Markup
(SP − CP) / CP × 100
Where: CP is your cost price and SP is your selling price. Both formulas start with the same profit (SP − CP) — margin divides it by the selling price, markup divides it by the cost price. Since cost is always the smaller number, markup comes out higher than margin for the same sale.
Cost Price (CP)
₹1,000.00
Selling Price (SP)
₹1,400.00
Margin
28.57%
Markup
40.00%
Your profit of ₹400.00 works out to a 28.57% margin and a 40.00% markup — the same rupee amount, expressed two different ways.
Profit Margin Calculation Example
See how your pricing breaks down, using the values you've entered.
Worked Example
Suppose your product costs ₹1,000.00 to make or source, and you sell it for ₹1,400.00.
That leaves you with a profit of ₹400.00 per unit a 28.57% margin, or equivalently, a 40.00% markup on your cost.
A few things worth keeping in mind:
Margin and markup describe the same profit from two different angles margin as a share of what you charge, markup as a share of what you paid.
This figure reflects gross margin it accounts only for the direct cost of the product, not overheads like rent, salaries, or marketing.
If you're setting prices from a target margin, dividing cost by (1 − margin%) gives the correct selling price simply adding the margin% to cost will actually give you a lower margin than intended.
Selling Price at Different Margins
Compare the selling price, profit, and equivalent markup needed to hit common margin targets, based on your cost price.
Swipe horizontally to view the complete reference table.
| Margin | Selling Price | Profit | Equivalent Markup |
|---|---|---|---|
| 10.00% | ₹1,111.11 | ₹111.11 | 11.11% |
| 20.00% | ₹1,250.00 | ₹250.00 | 25.00% |
| 30.00% | ₹1,428.57 | ₹428.57 | 42.86% |
| 40.00% | ₹1,666.67 | ₹666.67 | 66.67% |
| 50.00% | ₹2,000.00 | ₹1,000.00 | 100.00% |
| 60.00% | ₹2,500.00 | ₹1,500.00 | 150.00% |
Frequently Asked Questions
Common questions on margin vs markup, how to price for a target margin, and what counts as a healthy profit margin.
Disclaimer
Results are estimates for informational purposes only and may differ from actual values. Do not make financial, investment, tax, or legal decisions based solely on these results. Verify important calculations with official sources or a qualified professional. CalcMint is not liable for any loss or damage resulting from the use of this calculator.
Related Calculators
Continue planning your finances with our other free financial calculators.
Need another calculator?
Explore our collection of free finance calculators and financial guides to make smarter money decisions.