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Profit Margin Calculator: Margin and Markup
Gross profit, margin and markup from just two numbers, cost price and selling price.
HOW TO USE
- 1Enter what you paid for the product or service.
- 2Enter the price you sell it at.
- 3Read off gross profit, margin and markup instantly.
- 4Use margin for pricing decisions and markup for quoting.
EXAMPLE
INPUT
₹80 cost, ₹100 selling price
OUTPUT
₹20 profit, 20% margin, 25% markup
FAQ
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. On a ₹100 sale with ₹80 cost: 20% margin but 25% markup.
Which one should I use?
Margin is standard for reporting how much of each rupee of sales you keep. Markup is what you apply to your cost when setting a price. For a 30% margin you must markup roughly 43%.
Does this include overheads?
No. Enter the fully loaded cost (materials, labour, allocated overhead) and this stays accurate. Otherwise it is a gross margin, not net.