Free Profit Margin Calculator
Work out your profit margin in seconds. Start from a cost and a selling price, set a target margin to find the price, or turn a markup into the margin it gives. Margin and markup are shown together, so you never mix the two up.
Cost and selling price to profit, margin and markup.
You make ₹50.00 on ₹150.00
- Cost
- ₹100.00
- Selling price
- ₹150.00
- Gross profit
- ₹50.00
Handy for quick checks and quotes. Confirm the final figure on your costing sheet or accounting software before you rely on it.
Work out your margin in four steps.
Choose what you want to work out, type your numbers, and read the gross profit, the margin and the markup. Everything updates as you type.
Pick what to work out
Find the margin from a cost and a selling price, work out the price for a target margin, or turn a markup into the margin it gives.
Enter your numbers
Type the cost and the price or percentage. Choose your currency so the totals read the way you expect.
Read the result
See the gross profit, the profit margin and the markup together, all updating as you type.
Copy or reuse it
Copy the full breakdown in one tap for a quote, a costing sheet or your records.
Margin is not the same as markup.
The two get mixed up all the time, and it costs real money. Here is what matters when you price a product and protect your profit.
Margin is not markup
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A 50% markup is only a 33.3% margin, so the tool shows both together.
Gross vs net margin
Gross margin looks at revenue minus the direct cost of a product. Net margin takes every cost off, including overheads, salaries and tax. This tool works out the gross figure from a cost and a price.
Price for a target margin
If you want to hit a set margin, work back from it. Price = cost divided by one minus the margin. That is how you set a price that protects the profit you need.
Healthy margins vary
A good margin depends on the trade. Groceries run on thin margins and high volume, while software can run very high. Compare against your own sector, not a single rule of thumb.
How the margin maths works.
The formulas behind each mode, with a worked example. The maths is the same in any currency.
Profit margin
Profit = Revenue - Cost
Margin % = Profit ÷ Revenue × 100
Example: A cost of ₹100 sold for ₹150 is ₹50 profit, which is a 33.3% margin.
Markup
Markup % = Profit ÷ Cost × 100
Example: The same ₹50 profit on a ₹100 cost is a 50% markup, higher than the margin.
Price for a target margin
Price = Cost ÷ (1 - Margin ÷ 100)
Example: For a 30% margin on a ₹100 cost, price = 100 ÷ 0.7, which is ₹142.86.
Margin from a markup
Price = Cost × (1 + Markup ÷ 100)
Margin % = (Price - Cost) ÷ Price × 100
Example: A 50% markup on ₹100 gives ₹150, which works out to a 33.3% margin.
Margins you can see at a glance.
This tool is great for one product. But if you price a whole catalogue, watch the margin on every order, and need cost, tax and profit to reconcile cleanly, you want that built into your billing. That is the kind of ERP, billing and CRM software we build at Techliphant, shaped around how your business actually works.
Pricing from a markup instead? Try the markup calculator, or find your break-even point.
Common margin questions.
Profit margin is your profit shown as a percentage of the selling price. You work it out by taking the selling price, subtracting the cost, dividing by the selling price, and multiplying by 100. It tells you how much of every rupee of sales you keep as profit.
Subtract the cost from the selling price to get the profit, then divide the profit by the selling price and multiply by 100. So Margin % = (Price - Cost) ÷ Price × 100. A ₹100 item sold for ₹150 makes ₹50 profit, which is a 33.3% margin.
Both use the same profit, but they divide it by different numbers. Margin divides profit by the selling price, while markup divides profit by the cost. Because the selling price is bigger than the cost, the margin is always smaller than the markup. A 50% markup is a 33.3% margin. This calculator shows both so you do not mix them up.
It depends entirely on your trade. High-volume businesses like grocery and retail often run on single-digit margins, while software and consulting can run much higher. The useful comparison is against others in your own sector and against your own past figures, not a single number.
Divide the cost by one minus the margin written as a decimal. So Price = Cost ÷ (1 - Margin ÷ 100). To hit a 30% margin on a ₹100 cost, the price is ₹100 ÷ 0.7, which is ₹142.86. Set the tool to "Price for margin" and it does this for you.
Gross margin looks only at revenue minus the direct cost of what you sold. Net margin takes off every other cost too, including rent, salaries, marketing and tax, so it is a smaller number. This calculator works out the gross figure from a single cost and price.
No. Because margin is profit as a share of the selling price, and the profit can never be more than the whole price, the margin tops out just below 100%. Markup, on the other hand, has no ceiling, since it is measured against the cost.
Yes on both. It is free, there is no sign-up, and it runs entirely in your browser. Nothing you type is sent anywhere or saved, so your costs and prices stay on your own device.
It is great for a quick check on one product or a quote. For pricing across a catalogue, tracking margins on every order, and keeping cost, tax and profit reconciled, you want billing or ERP software that does it for you. That is the kind of system we build at Techliphant.
Private by design: this calculator runs entirely in your browser, so nothing you type is uploaded or stored. It is provided free for quick estimates and educational use. For pricing, invoices and accounts, confirm the final figures against your own records or accounting software.
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