Profit Margin Calculator

Find your profit and margin from cost and selling price, or set a target margin and get the price you should charge.

Profit margin formula

Profit = Selling price − Cost Gross margin = Profit ÷ Selling price × 100 Markup = Profit ÷ Cost × 100 Price for a target margin = Cost ÷ (1 − Margin ÷ 100)

Example

You buy a product for ₹750 and sell it for ₹1,000. Profit is ₹250, the margin is 25% (₹250 ÷ ₹1,000) and the markup is 33.33% (₹250 ÷ ₹750). To earn a 30% margin on the same product, price it at ₹750 ÷ 0.70 = ₹1,071.43.

Gross, operating and net margin

Gross margin uses only the direct cost of the product (cost of goods sold). This calculator shows gross margin.
Operating margin also deducts overheads such as rent, salaries and marketing.
Net margin deducts everything, including interest and tax.

Good margins vary by industry. Grocery retail often runs at single-digit net margins, while software and services can be much higher. Compare yourself with businesses like yours.

GST and margins

Calculate margin on prices excluding GST. If you are GST-registered, the GST you collect is not your income, and input tax credit removes it from your cost. Use the GST Calculator to strip GST from inclusive prices first.

Frequently asked questions

Is margin the same as markup?

No. Margin is profit as a percentage of selling price; markup is profit as a percentage of cost. A 50% markup equals a 33.3% margin. See the Markup vs Margin Calculator for a full conversion table.

Can profit margin be more than 100%?

No. Margin is profit divided by price, so it is always below 100%. Markup can be well above 100%.

What is a good profit margin?

It depends on the industry. Many small businesses aim for gross margins of 30–50% and net margins of 10–20%, but high-volume businesses can succeed with far less.

Results are for planning and information only and are not accounting or financial advice. Check important figures with your accountant.