Profit Margin Calculator

A profit margin calculator shows how much of each sale you keep. Shopkeepers, resellers, freelancers and small manufacturers use it to price products, check whether a discount still leaves a profit, and compare suppliers.

It works three ways: from a cost and a selling price, from a cost and the margin you want, or from a cost and a markup percentage. Whichever you start with, it shows the selling price, the profit or loss, the margin and the markup, because confusing margin with markup is one of the most common pricing mistakes.

Margin is profit as a share of the selling price: (price − cost) ÷ price. Markup is profit as a share of the cost: (price − cost) ÷ cost. The same sale has a smaller margin than markup: buying at ₹750 and selling at ₹1,200 is a 37.5% margin but a 60% markup.

To hit a target margin, price = cost ÷ (1 − margin). A 35% margin on a ₹750 item needs a price of ₹1,153.85. Margins can't reach 100%, because that would mean a free item.