Profit Margin Calculator
Calculate your profit margin and markup percentage from a known cost price and selling price.
- Free to use
- Accurate results
- No registration required
- Works on all devices
Enter your cost price and selling price to calculate both your profit margin (% of selling price) and markup (% of cost price).
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₹
Your result
₹200
Profit amount
Profit margin (% of selling price)20.00%
Markup (% of cost price)25.00%
AI explanation
Formula
Profit = Selling price − Cost price; Margin% = Profit ÷ Selling price × 100; Markup% = Profit ÷ Cost price × 100Worked example
Cost ₹800, sold at ₹1,000
| Field | Value |
|---|---|
| Cost price | 800 |
| Selling price | 1000 |
| Profit amount | 200 |
| Profit margin (% of selling price) | 20 |
| Markup (% of cost price) | 25 |
Assumptions
- Margin and markup are two different ways of expressing the same rupee profit — margin as a % of selling price, markup as a % of cost price — margin is always the smaller number.
Frequently asked questions
Why are my margin and markup percentages different for the same profit?
Margin is profit as a percentage of the (higher) selling price, while markup is profit as a percentage of the (lower) cost price — the same ₹200 profit is therefore a smaller percentage of selling price (20%) than of cost price (25%).
Which one should I use to compare product profitability?
Margin is the standard metric for comparing profitability across products or businesses, since it's expressed relative to revenue (selling price), which is the more meaningful base for most business decisions.
How do I set a price to hit a target margin, not just check one?
Use the Retail Price Calculator, which solves for selling price given your cost and a target margin percentage.