Profit Margin Calculator
Calculate profit margin, markup percentage, and selling price instantly. Free, no signup required.
Enter Values
Formulas Used
Profit Margin = (Selling Price - Cost Price) / Selling Price x 100
Markup = (Selling Price - Cost Price) / Cost Price x 100
Selling Price = Cost Price / (1 - Margin / 100)
Results
Enter values to see your profit margin
How to Use This Calculator
Choose Your Calculation Mode
Select from three modes: calculate margin from prices, find the right selling price for a target margin, or determine the maximum cost price to achieve your desired margin.
Enter Your Values
Type in your cost price and selling price (or your target margin percentage, depending on the mode). All amounts are in INR with Indian number formatting.
View Your Results Instantly
As you type, the calculator shows your profit margin percentage, markup percentage, and absolute profit amount in real-time — no need to click any button.
Explore Different Scenarios
Adjust your inputs to compare different pricing strategies. Try different cost prices or target margins to find the optimal price point for your products.
Copy and Use
Copy the calculated values and use them to set prices in your store. Repeat for each product to build a pricing strategy that maximizes profitability.
Why Use Our Profit Margin Calculator?
Instant Results
Get profit margin, markup percentage, and profit amount calculated in real-time as you type. No buttons to click.
Three Calculation Modes
Calculate margin from prices, find the right selling price for a target margin, or determine max cost to hit your margin goals.
Built for Indian Businesses
All amounts in INR with Indian number formatting. Perfect for pricing products in your online store.
Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue that is profit after deducting costs. Formula: (Selling Price - Cost Price) / Selling Price × 100. For example, if you sell a product for ₹1,000 that costs ₹600, your profit margin is (1000 - 600) / 1000 × 100 = 40%.
What is the difference between margin and markup?
Margin is the percentage of the selling price that is profit, while markup is the percentage of the cost price that is added as profit. They use different bases: margin uses selling price, markup uses cost price. For example, a 50% markup equals a 33.3% margin. If your cost is ₹100 and you add 50% markup, the selling price is ₹150 — but the margin is only 33.3% (₹50/₹150).
What is a good profit margin for ecommerce?
Profit margins vary by industry and business model. Generally, D2C (direct-to-consumer) brands aim for 20-50% margins, while resellers typically work with 10-20% margins. Digital products and services can achieve higher margins of 50-80%. The key is to cover all your costs — including shipping, packaging, payment gateway fees, and marketing — while remaining competitive.
How to calculate selling price from margin?
Use the formula: Selling Price = Cost Price / (1 - Margin/100). For example, if your cost price is ₹500 and you want a 40% margin: Selling Price = 500 / (1 - 40/100) = 500 / 0.6 = ₹833.33. You can use the "Target Margin" mode in our calculator to do this instantly.
Is this calculator free?
Yes, this profit margin calculator is 100% free to use with no signup required. You can calculate as many times as you need — there are no limits or hidden charges.
How does GST affect profit margins?
GST (Goods and Services Tax) is added on top of your selling price and is collected from the customer, so it does not directly reduce your profit margin. However, you should factor GST into your pricing strategy — if your customers are price-sensitive, a high GST slab (like 18% or 28%) on top of your selling price may reduce demand. Always calculate your margin on the base price before GST.
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