How to use the Profit Margin Calculator
Step 1: Enter your cost price: what it costs you to buy or make one unit.
Step 2: Enter your selling price: what your customer pays for it.
Step 3: Read the total profit (or loss), the profit margin and the markup.
Step 4: Use the formulas shown to understand how each figure is worked out.
Step 5: Press Copy results to paste the summary into a note or spreadsheet.
Features and benefits
Margin and markup together
See both percentages side by side, so you never confuse them.
Loss detection
A selling price below cost is shown as a loss with negative percentages and a clear warning.
Zero-safe
If a percentage cannot be defined because of a zero cost or selling price, the tool explains why instead of showing an error.
Exact money maths
Amounts are handled as whole paise, so results are accurate to the paisa.
Copyable summary
Copy all results in one tap.
The formulas
Profit equals selling price minus cost price. Profit margin equals profit divided by selling price, times 100. Markup equals profit divided by cost price, times 100. For example, an item that costs 80 rupees and sells for 100 rupees has a profit of 20 rupees, a margin of 20 percent (20 divided by 100) and a markup of 25 percent (20 divided by 80).
Margin versus markup
Margin is measured against the selling price and markup against the cost price. Because the cost is lower than the price whenever you make a profit, markup is always the larger percentage, and the two only match when profit is zero. Mixing them up is a classic pricing mistake: adding a 20 percent markup to cost does not give a 20 percent margin. If your target is a specific margin, calculate the price from the margin, not from a markup.
What this calculator does not include
The figures show the margin on the prices you enter. They do not include rent, wages, shipping, platform fees, returns or taxes unless you build them into the cost price. For a realistic picture, use your full cost per unit. If your prices include GST, remove the GST first using the GST Calculator, because GST collected is not your income.
Example use cases
Pricing a product
Check whether your selling price leaves a healthy margin.
Comparing suppliers
See how a change in cost affects your profit on the same selling price.
Small business reporting
Calculate margins for individual items quickly.
Learning business basics
Students can see the difference between margin and markup.
Frequently asked questions
What is the difference between profit margin and markup?
Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost price. A 25 percent markup is a 20 percent margin.
How do I calculate profit margin?
Subtract the cost price from the selling price to get the profit, divide by the selling price and multiply by 100.
What if my selling price is below my cost?
The calculator shows a loss, with negative margin and markup percentages.
Why does it say margin is not defined?
Margin is a share of the selling price, so a selling price of zero makes it impossible to calculate. Markup has the same issue with a cost price of zero.
What is a good profit margin?
It varies widely between industries and business models, so compare with similar businesses and your own costs rather than a universal number.
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Useful guides
- How to Calculate Profit Margin (and Why It Isn't Markup)Understand profit, profit margin and markup with simple formulas and worked examples, learn how to set a price for a target margin and avoid common pricing mistakes.
- How to Calculate GST in India: Formulas and ExamplesLearn how to add GST to a price and remove it from a GST-inclusive total, with worked examples, the CGST, SGST and IGST split and the mistakes to avoid.
Last updated 7 November 2026.