How Profit Margin Calculator works

Calculate profit, margin and markup, or find the selling price needed for a target margin.

The formula

Margin = profit ÷ selling price. Markup = profit ÷ cost price. They are not interchangeable.

A practical example

An item costing ₹80 and selling for ₹100 has 20% margin and 25% markup.

Important limitations

Results are estimates based only on the values you enter. They do not include every fee, tax, timing difference, market movement or product rule.

Frequently asked questions

What is the difference between margin and markup?

Margin divides profit by revenue; markup divides profit by cost.

Can I solve for selling price?

Yes. Use Target margin mode.

Why is a 100% target margin invalid?

It would require an infinite selling price when cost is above zero.