About this calculator
Enter the cost price and the selling price. You get the profit, the margin and the markup. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost, so markup is always the bigger number.
How to use it
- Enter the cost price.
- Enter the selling price.
- Read the profit, margin and markup.
The formula
- selling price
- what the customer pays
- cost
- what the item cost you
Worked example
Cost ₹800, selling price ₹1,000
- Profit = 1,000 − 800 = ₹200.
- Margin = 200 ÷ 1,000 × 100 = 20%.
- Markup = 200 ÷ 800 × 100 = 25%.
What the result means
If you want a target margin, the price is cost ÷ (1 − margin). For a 20% margin on ₹800 cost, that is 800 ÷ 0.8 = ₹1,000.
Margin, not markup, tells you how much of every rupee of sales you keep.
Assumptions
- Cost price includes everything paid to get the item ready to sell.
Limitations
- Rent, salaries and other overheads are not included; this is margin on each item.
- If the price includes GST, use the price without GST for an accurate margin.
Frequently asked questions
What is the difference between margin and markup?
Margin divides profit by the selling price; markup divides it by the cost. A 25% markup is a 20% margin.
What is a good profit margin?
It depends on the trade. Groceries often run on single-digit margins, while clothing and services can be much higher.
How do I price for a 30% margin?
Divide the cost by 0.7. A ₹700 cost needs a price of ₹1,000 for a 30% margin.
Last reviewed on 1 October 2026. Found a mistake? Tell us.