Profit Margin Calculator
Solve margin, markup, selling price, or cost from any two figures — and see the difference.
Gross profit per unit
₹600.00
Margin
33.33%
Markup
50.00%
How to Use
- 1. Choose which value you want to solve for.
- 2. Enter the two figures you already know.
- 3. Read the margin, markup, and gross profit instantly.
- 4. Set a quantity to see totals for a whole order.
Margin Is Not Markup
These two numbers describe the same profit measured against different bases, and mixing them up quietly erodes profitability. Margin is profit ÷ selling price. Markup is profit ÷ cost.
An item costing 100 and sold for 150 carries a 50% markup but a 33.3% margin. So a business that decides "we need a 40% margin" and then adds 40% to cost actually lands at a 28.6% margin — a shortfall that compounds across every sale.
To price for a target margin, work backwards from the selling price: price = cost ÷ (1 − margin). That is what the "Selling price" mode does here. It is also why a 100% margin is impossible — the divisor reaches zero and the required price runs to infinity.
Note that this is gross margin: revenue minus the direct cost of goods. Rent, salaries, and tax come out afterwards, so your net margin will always be lower than the figure shown here.
Related: GST Calculator, Invoice Generator, and Discount Calculator.
Frequently Asked Questions
What is the difference between margin and markup?
Both measure the same profit against a different base. Margin is profit divided by the selling price; markup is profit divided by the cost. A product costing 100 and selling for 150 has a 50% markup but only a 33.3% margin — confusing the two is one of the most common pricing mistakes.
Why can I not have a 100% margin?
Margin is profit as a share of revenue, so reaching 100% would mean the item cost nothing. As the margin approaches 100%, the required selling price rises towards infinity — which is why the calculator will not solve for it.
Is this gross or net margin?
Gross. It compares revenue against the direct cost of the goods. Net margin additionally subtracts overheads such as rent, salaries, and tax, so your true net figure will be lower.
How do I price for a target margin?
Switch "Solve for" to Selling price, enter your cost and the margin you want, and the required price is calculated. This is the correct direction — starting from cost and adding a percentage gives you a markup, not a margin.
What does the quantity field do?
It scales the per-unit figures to a whole batch or order, so you can see total profit alongside unit economics without a second calculation.
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Guide
How to calculate profit margin, markup and selling price
Margin and markup both describe the same profit, but against different bases. Margin is profit divided by selling price. Markup is profit divided by cost. This calculator shows both side by side, so you can see what a price really earns before you commit to it.
You choose what to solve for, supply the other two numbers, and the tool fills in the rest per unit. It always reports gross figures: selling price minus the direct cost you enter, with no overheads, salaries, shipping or tax deducted unless you include them in cost.
Step by step
- Under 'Solve for', pick Margin, Selling price or Cost price. The inputs you do not need are hidden.
- Choose a currency from the dropdown (INR, USD, EUR, GBP or AED). This only changes the symbol and number format; nothing is converted.
- Enter the two known values: Cost price (per unit), Selling price (per unit), or move the Target margin slider (0 to 95% in 0.5 steps).
- Set Quantity if you sell in batches. It must be a whole number of at least 1; decimals are rounded.
- Read gross profit per unit, Margin and Markup. When quantity is above 1, Total revenue and Total profit (or loss) also appear.
- Click Copy summary to put the figures on your clipboard as plain text.
When this is useful
- Setting a shelf price for a product when you know the landed cost and the margin you want.
- Working out the cost ceiling for a supplier quote when the selling price is fixed.
- Checking whether a marketplace listing price still leaves a gross profit.
- Comparing a markup quoted by a wholesaler with the margin you actually keep.
- Estimating the total profit on a bulk order of a set quantity.
Worked example: Pricing 25 notebooks bought at Rs 1,200 each
Margin mode, INR, Cost price 1,200.00, Selling price 1,800.00, Quantity 25. Gross profit per unit is 600.00, Margin 33.33% (600 / 1,800) and Markup 50.00% (600 / 1,200). Total revenue is 45,000.00 and total profit 15,000.00. Now suppose you want a 40% margin. In Selling price mode, 1,200 / (1 - 0.40) = 2,000.00. If you had added 40% markup instead, the price would be 1,680.00 and the margin only 28.57%.
Tips for better results
- Include freight, packaging and payment fees in cost if you want an honest gross margin.
- Enter prices excluding GST or VAT; the tax you collect is not your revenue.
- Use 'Selling price' mode to price for a target margin; it divides cost by (1 minus margin).
- A red figure and 'Gross loss per unit' means selling price is below cost.
- Remember this is gross margin. Rent, wages and tax come out afterwards.
Common mistakes
- Adding the target margin to cost. A 40% markup gives only a 28.57% margin, so use Selling price mode instead.
- Entering a selling price that includes tax. The margin looks better than it is; use the pre-tax price.
- Leaving old values in a hidden field. Only the two inputs shown are used, so confirm the labels before reading the result.
- Expecting a result for cost of zero. Markup then shows a dash, because dividing by zero cost is undefined.
Your files and privacy
The calculation runs in your browser and nothing you enter is saved or sent. Copy summary writes to your own clipboard. The page records an anonymous visit with a random session ID, but not your figures. This is informational, not financial or pricing advice.
Frequently asked questions
What is the difference between margin and markup?
Both use the same profit. Margin divides it by selling price; markup divides it by cost. For a cost of 100 and a price of 150, markup is 50% and margin is 33.33%. Markup is always larger than margin when profit is positive.
Why does the slider stop at 95%?
Margin of 100% would need a zero cost, and the required price grows without limit as margin approaches 100%. The slider caps at 95% to stay in a usable range, and a 100% value has no solution.
Is this gross or net margin?
Gross. It compares the selling price with the cost you enter. Add overheads into cost if you want a fully loaded view, but it is not an accounting net profit figure.
Can I convert between margin and markup?
Yes. Margin = markup / (1 + markup), and markup = margin / (1 - margin), as fractions. For example, a 50% markup is 0.5 / 1.5 = 33.33% margin. You can also enter cost and price and read both.
What happens when the selling price is below cost?
Profit turns negative and is shown in red as a loss. Margin and markup become negative percentages, and the totals show total loss for the quantity.
Guide reviewed 2026-10-11 by the useToolify team.
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