Profit Margin Calculator
Calculate gross profit, profit margin percentage, and markup based on cost price and selling price. Perfect for businesses and ecommerce sellers.
Total Profit
₹500
Profit Margin
33.33%
Markup
50.00%
Trade Summary
Profit Margin
The percentage of revenue left as profit after covering the cost of goods sold
Markup
The percentage increase from cost price to selling price
Key Difference
Margin is based on selling price, markup is based on cost price
Example Calculation
Given:
- • Cost Price = ₹100
- • Selling Price = ₹150
- • Profit = ₹50
Results:
- • Profit Margin = (50 ÷ 150) × 100 = 33.33%
- • Markup = (50 ÷ 100) × 100 = 50%
💡 Key Points to Remember
- • Profit Margin shows what percentage of each sale is profit
- • Markup shows how much you're adding to your cost
- • Higher margins generally indicate better profitability
- • Use this calculator for pricing products, setting targets, and understanding profitability
1. Profit Calculation
Profit = Selling Price - Cost Price
Example: If Cost Price = ₹1,000 and Selling Price = ₹1,500
Profit = ₹1,500 - ₹1,000 = ₹500
2. Profit Margin Percentage
Profit Margin (%) = (Profit ÷ Selling Price) × 100
Example: Profit = ₹500, Selling Price = ₹1,500
Profit Margin = (₹500 ÷ ₹1,500) × 100 = 33.33%
3. Markup Percentage
Markup (%) = (Profit ÷ Cost Price) × 100
Example: Profit = ₹500, Cost Price = ₹1,000
Markup = (₹500 ÷ ₹1,000) × 100 = 50%
📊 Complete Example
Given Values:
- • Cost Price: ₹2,000
- • Selling Price: ₹3,000
Step 1 - Calculate Profit:
Profit = ₹3,000 - ₹2,000 = ₹1,000
Step 2 - Calculate Margin:
Margin = (₹1,000 ÷ ₹3,000) × 100 = 33.33%
Step 3 - Calculate Markup:
Markup = (₹1,000 ÷ ₹2,000) × 100 = 50%