Profit Margin Calculator
Ensure your business stays profitable. Instantly calculate your gross profit, margin, and markup by simply entering your costs and selling price.
Financial Inputs
The total amount it costs you to make or buy the product.
The final price at which you sell the product to the customer.
Gross Profit
Profit Margin vs. Markup
These two terms are often used interchangeably, but confusing them can be a costly mistake for your business.
Profit Margin
Profit margin shows how much of your revenue is profit.
Formula: (Gross Profit ÷ Revenue) × 100
If you sell a shirt for ₹100 and it costs ₹70 to make, your profit is ₹30. Your profit margin is 30%.
Markup
Markup shows how much more your selling price is than your cost.
Formula: (Gross Profit ÷ Cost) × 100
Using the same ₹100 shirt that costs ₹70: your profit is ₹30. Your markup is 42.8%!
Gross Profit vs Net Profit
This calculator measures Gross Profit (Revenue minus the direct cost of the good). To find your Net Profit, you would also need to subtract operating expenses like rent, marketing, and payroll.
The Margin Trap
Never confuse a 50% markup with a 50% margin. A 50% markup on a ₹100 item means selling it for ₹150 (making ₹50). That ₹50 profit on ₹150 revenue is only a 33.3% profit margin!