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Free profit margin calculator
Enter what something cost you and what you sell it for, and see the profit, the margin and the markup side by side. Instant, free and nothing is stored.
- Profit
- ₹0.00
- Markup
- 0.00%
- Profit margin
- 0.00%
Worked out in your browser. Nothing you type is sent to us or saved.
How to use it
How to use the margin calculator
Step 01
Enter your cost
Enter your business name, GSTIN and address, then the customer you are billing. The preview updates as you type.
Step 02
Enter your price
Put in what the item or job actually costs you, including materials and anything you paid out to deliver it.
Step 03
Read the result
Put in what you charge the customer, excluding tax so the comparison is like for like.
The arithmetic
How to calculate profit margin
Two numbers people mix up constantly. The difference is what you divide by.
Profit margin
Profit = price − cost
Margin % = Profit ÷ price × 100
A ₹700 item sold at ₹1,000 makes ₹300 profit, which is a 30% margin. Margin can never exceed 100%.
Markup
Markup % = Profit ÷ cost × 100
The same ₹300 on a ₹700 cost is a 42.86% markup. Markup is always the bigger number, which is why quoting by markup can mislead.
FAQ
Margin questions, answered
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A ₹700 item sold at ₹1,000 makes ₹300, which is a 30 per cent margin but a 42.86 per cent markup. Confusing the two is one of the most common ways businesses underprice.
How do I calculate profit margin?
Subtract cost from selling price to get profit, divide that by the selling price and multiply by a hundred. The calculator does it as you type, and shows the markup alongside so you can see both.
Should I include GST in the price?
No. Use the price excluding tax. GST is collected on behalf of the government rather than earned by you, so including it overstates the margin.
What is a good profit margin?
It depends entirely on your trade. Services with little material cost carry far higher margins than goods resold at volume. The useful comparison is against your own past jobs, not against an industry average.
Is my data stored?
No. Everything is calculated in your browser and nothing is sent to us or saved.
Can I track margin per job automatically?
Yes. Record cost against your items in Pinvoice and tag expenses to a client, and the profit on a job becomes a number you can look up rather than one you work out afterwards. It is free.
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