Profit Margin Calculator
Margin and markup from cost and price, or the price for a target margin
Your Profit
- Cost₹800(80%)
- Profit₹200(20%)
- 1Enter the costWhat the item costs you
- 2Add price or target marginWhichever you know
- 3See margin and markupPlus profit or the right price
Margin vs markup
Both compare profit with a price, but margin divides by the selling price and markup by the cost. The same sale has a smaller margin than markup.
Margin % = (price − cost) ÷ price × 100
Markup % = (price − cost) ÷ cost × 100 · Price for a margin = cost ÷ (1 − margin)
Don't confuse the two
Adding 25% to the cost (a 25% markup) gives only a 20% margin. To earn a 25% margin, the price must be cost ÷ 0.75, a 33.3% markup. Mixing them up is a common reason small businesses underprice.
GST and margins
Work out margins on prices without GST. GST you collect is passed on to the government (after input tax credit), so it isn't part of your revenue or profit.
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Frequently asked questions
What is a good profit margin?
It varies by trade: grocery retail often runs on 2–10% net margins, while software and services can exceed 20%. Compare with businesses like yours.
Is this gross or net margin?
Gross margin, if the cost is just the product's cost. For net margin, include all expenses (rent, salaries, marketing) in the cost.
How do I price for a 30% margin?
Choose 'Cost and the margin I want' and enter 30%: price = cost ÷ 0.7. A ₹700 item should sell for ₹1,000.
These results are estimates for planning only, not financial, investment or tax advice. Rates and rules change, and your bank, fund house or employer may calculate slightly differently. Check with them or a qualified adviser before you decide.
Last reviewed: October 2026