Margin & Markup Calculator
Calculate selling price, profit margin, and markup percentage for any product or service.
Calculate gross profit margin, markup percentage, and selling price for any product or service. Enter cost and selling price to see your margin and markup instantly, or enter cost and a target margin to find the right selling price. Free pricing tool for businesses, sellers, and freelancers.
Selling Price
₹750.00
Profit Amount
₹250.00
Gross Margin
33.33%
Markup
50.00%
Price Breakdown
Markup Reference Tablefor cost ₹500.00
| Markup % | Selling Price | Profit | Margin % |
|---|---|---|---|
| 10% | ₹550.00 | ₹50.00 | 9.09% |
| 20% | ₹600.00 | ₹100.00 | 16.67% |
| 25% | ₹625.00 | ₹125.00 | 20.00% |
| 30% | ₹650.00 | ₹150.00 | 23.08% |
| 40% | ₹700.00 | ₹200.00 | 28.57% |
| 50%current | ₹750.00 | ₹250.00 | 33.33% |
| 75% | ₹875.00 | ₹375.00 | 42.86% |
| 100% | ₹1,000.00 | ₹500.00 | 50.00% |
| 150% | ₹1,250.00 | ₹750.00 | 60.00% |
| 200% | ₹1,500.00 | ₹1,000.00 | 66.67% |
| 300% | ₹2,000.00 | ₹1,500.00 | 75.00% |
Frequently Asked Questions
- What is the difference between margin and markup?
- Margin is profit expressed as a percentage of the selling price. Markup is profit expressed as a percentage of the cost. For example, a 25% markup on a ₹100 cost gives a selling price of ₹125 — but the margin is only 20%.
- How do I calculate selling price from a target margin?
- Selling Price = Cost ÷ (1 − Margin%). For a ₹100 cost with a 30% margin target: ₹100 ÷ 0.70 = ₹142.86.
- What is a good profit margin?
- It depends on the industry. Retail typically targets 20–50% gross margin, software and SaaS products often achieve 60–80%, while grocery and FMCG margins are typically 1–10%.
- Is markup the same as profit margin?
- No. Markup and margin both measure profitability but use different bases. Markup uses cost as the base; margin uses revenue. A 50% markup equals a 33.3% margin.
What is Margin Calculator?
Margin Calculator is a pricing tool for working out gross profit margin, markup percentage, and selling price from a product's cost. Margin and markup are two different ways of expressing profit on a sale. Confusing them leads to systematic underpricing, which is one of the most common reasons small businesses lose money without realising it.
The calculator works in two directions: enter cost and selling price to see margin and markup, or enter cost and a target margin to find the selling price that hits that margin.
How does it work?
Gross profit margin is profit divided by revenue, expressed as a percentage. If a product costs ₹80 and sells for ₹100, the profit is ₹20. Margin = ₹20 / ₹100 = 20%.
Markup is profit divided by cost. Same product: ₹20 / ₹80 = 25% markup. The margin and markup numbers are different even though the profit is the same.
To find selling price from a target margin, the formula is: Selling Price = Cost / (1 - Margin%). For a ₹500 cost and a 40% margin target: ₹500 / 0.60 = ₹833.33. Entering a target markup instead uses: Selling Price = Cost x (1 + Markup%).
Margin Calculator in India
Indian sellers on marketplaces like Amazon, Flipkart, and Meesho need to factor platform commissions and GST into their margin calculations. A product priced at ₹499 with a 10% marketplace commission leaves ₹449.10 before GST and cost. Calculating margin on the gross price without subtracting commission gives a misleading result.
GST affects cost structure differently depending on whether you are GST-registered. A registered business can claim input tax credit on the GST paid on raw materials and inputs, reducing effective cost. An unregistered seller or a business under the composition scheme cannot claim ITC, so the GST paid on purchases is a real cost that must enter your margin calculation.
For freelancers and service providers charging GST at 18%, the taxable amount is the base fee. A ₹10,000 invoice with 18% GST means ₹8,474.58 is your actual revenue and ₹1,525.42 goes to the government as output GST.
Tips to get the best results
- Always use the cost exclusive of recoverable GST (input credit) as your input. Including GST you can later reclaim inflates the cost and deflates your apparent margin.
- Compare margin percentages across products, not absolute rupee profit. A ₹50 profit on a ₹100 product (50% margin) is better than ₹50 profit on a ₹500 product (10% margin).
- Set a minimum acceptable margin before pricing, not after. Working backwards from a market price often leads to accepting margins that do not cover overheads.
- For e-commerce, add return rate and shipping cost to your effective cost before calculating margin. A 5% return rate on a ₹500 product adds roughly ₹25 to average cost.