What is the Profit Margin Calculator?
Profit margin and markup are often confused but answer different questions. Margin is profit as a percentage of the selling price (how much of each sale is profit), while markup is profit as a percentage of the cost price (how much you added on top of cost). Both matter for pricing decisions.
Enter your cost price and selling price to instantly see the profit amount, gross margin percentage, and markup percentage — useful for retail pricing, e-commerce listings, and freelance quotes.
Profit Margin Calculator Formula & How It Works
- Cost Price = what you paid for the product or service
- Selling Price = what the customer pays
- Margin % = profit as a share of revenue
- Markup % = profit as a share of cost
Margin and markup are always different (except at 0%) because they divide by different bases. A product costing ₹100 sold for ₹150 has a markup of 50% (₹50 profit on ₹100 cost) but a margin of 33.3% (₹50 profit on ₹150 revenue).
Worked Examples
Cost ₹400, Sell ₹600
Profit = ₹200. Margin = (200/600)×100 = 33.33%. Markup = (200/400)×100 = 50%.
Cost ₹1,000, Sell ₹1,250
Profit = ₹250. Margin = 20%. Markup = 25%.