What is it?
The Profit Margin Calculator works out the profit you make on a sale. It shows the profit, the margin (profit as a share of the price), the markup (profit as a share of the cost) and the selling price.
Who is it for?
Shopkeepers, online sellers, small manufacturers and freelancers setting prices that leave a real profit.
How to use it
Under I know, choose Cost and selling price, Cost and the margin I want, or Cost and the markup I want, then fill in the numbers. The answer appears as you type; there is no Calculate button. Tap Copy result to copy it, or Share on WhatsApp to send it.
Margin vs markup
- Cost ₹100, price ₹150: profit ₹50. Markup = 50 ÷ 100 = 50%. Margin = 50 ÷ 150 = 33.3%.
- Adding a 30% markup gives only a 23% margin. If you want a 30% margin, the price is cost ÷ 0.7 = ₹142.86, not ₹130.
Include every cost
- Count shipping, packaging, payment gateway fees (about 2%), marketplace commission and returns, not just the purchase price.
- Calculate margin on the price before GST; GST collected isn’t your income.
- To cover rent and salaries too, use the Break-even Calculator.
Worked example
Cost ₹400, desired margin 25%: price = 400 ÷ 0.75 = ₹533.33 (markup 33.3%).
Errors and how to fix them
- “Enter a selling price”: the price box is empty.
- Negative margin: selling below cost.
Open the tool: Profit Margin Calculator
Still stuck?
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Questions, or an error not listed here?
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