Finance Calculators
Profit Margin Calculator
Calculate profit, profit margin and markup from your cost and selling price.
About the Profit Margin Calculator
Understanding your margins is essential for pricing and profitability. This profit margin calculator takes your cost and selling price and returns the gross profit, the profit margin and the markup percentage.
Margin expresses profit as a share of the selling price, while markup expresses it as a share of the cost — two figures every business owner should know.
How to use the Profit Margin Calculator
- Enter the cost price.
- Enter the selling price.
- Click Calculate to see profit, margin and markup.
How the calculation works
Profit = Selling − Cost
Margin % = Profit ÷ Selling × 100
Markup % = Profit ÷ Cost × 100
Margin % = Profit ÷ Selling × 100
Markup % = Profit ÷ Cost × 100
Example
Buying at ₹800 and selling at ₹1,200 gives ₹400 profit — a 33.33% margin and a 50% markup.
Frequently asked questions
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost price.
Because the selling price is larger than the cost, dividing by it gives a smaller percentage than dividing by cost.
Yes, if the selling price is below cost the result shows a negative profit and margin.
Rearrange the pricing: Selling price = Cost ÷ (1 − target margin), then verify it here.