Margin Calculator - Profit Margin & Markup
Calculate profit margin, markup, and selling price. Convert between margin and markup. Find the right selling price for your desired profit margin.
Margin Calculator
Calculate profit margin, markup & selling price
Margin Analysis
Gross Profit Margin
40.0%
Gross Profit
₹40,000
Markup
66.7%
Revenue₹1,00,000
Cost of Goods₹60,000
Gross Profit₹40,000
Revenue Breakdown
Cost (60%)Profit (40%)
How to Use the Margin Calculator
- Calculate Margin — Enter revenue and cost to find profit margin, markup, and gross profit.
- Convert Margin ↔ Markup — Quickly convert between margin percentage and markup percentage.
- Find Selling Price — Enter cost price and desired margin to calculate the required selling price.
Margin vs Markup — What's the Difference?
Profit Margin
Margin = (Profit / Revenue) x 100
Profit as a percentage of selling price. If you sell for ₹100 and your cost is ₹60, margin = 40%.
Markup
Markup = (Profit / Cost) x 100
Profit as a percentage of cost price. If cost is ₹60 and profit is ₹40, markup = 66.7%.
Frequently Asked Questions
What is a good profit margin?
Good profit margins vary by industry. In India, retail typically has 2-5% net margin, FMCG 8-15%, IT services 15-25%, and SaaS 60-80% gross margin. A healthy gross margin for most businesses is 30-50%. Net margins above 10% are generally considered good.
What is the formula for profit margin?
Profit Margin = ((Revenue - Cost) / Revenue) × 100. For example, if you sell a product for ₹1,000 and it costs ₹600, your margin is ((1000-600)/1000) × 100 = 40%.
What is the difference between gross margin and net margin?
Gross margin = (Revenue - COGS) / Revenue. It only considers direct costs. Net margin = (Revenue - All Expenses) / Revenue. It includes operating costs, taxes, interest, depreciation. Net margin is always lower than gross margin.
How to convert margin to markup?
Markup = Margin / (100 - Margin) × 100. For example, 40% margin = 40/(100-40) × 100 = 66.7% markup. Conversely, Margin = Markup / (100 + Markup) × 100.
Why is margin always less than markup?
Margin is calculated on the selling price (a larger number), while markup is calculated on cost price (a smaller number). The same profit divided by a larger denominator (selling price) gives a smaller percentage. A 50% markup equals only 33.3% margin.
How to set the right selling price for my product?
Use the "Find Selling Price" mode: enter your cost and desired margin. Selling Price = Cost / (1 - Margin/100). Consider your target market, competitor pricing, and perceived value. For physical products, aim for 40-60% gross margin to cover operating expenses.
Need Help with Your Business?
Get expert assistance for company registration, tax filing, and compliance.
- Free Expert Consultation
- 100% Online Process
- Transparent Pricing
- Dedicated Support Manager
Limited Time: Free Consultation
Get Expert Consultation
Get expert guidance • Callback in 30 minutes