Profit Margin Calculator

Calculate profit, profit margin and markup from your cost price and selling price.

What is the Profit Margin Calculator?

Profit margin is the share of the selling price that is profit. It tells you how much of every rupee of sales you keep.

How does it work?

Profit = selling price − cost. Margin divides profit by the selling price; markup divides profit by the cost.

Formula

Profit = SP − CP
Margin % = Profit ÷ SP × 100
Markup % = Profit ÷ CP × 100

Example

Buying at ₹600 and selling at ₹1,000 gives ₹400 profit: a 40% margin and a 66.67% markup.

Frequently asked questions

What is the difference between margin and markup?

Both use the same profit, but margin is measured against the selling price and markup against the cost. A 25% markup equals a 20% margin.

What is a good profit margin?

It varies widely: grocery retail may run on 2–5% net margins, while software can exceed 20%. Compare with businesses in your industry.

Related tools

Enable JavaScript to use this calculator.