Profit Margin Calculator
Calculate profit margins, markup, and selling price
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Quick Examples
Profit Margin by Percentage
Markup Calculator by Percentage
Profit Margin by Amount
How Profit Margin Calculator Works
- Enter Cost Price: The amount you paid to acquire/produce the product
- Enter Selling Price: The amount you sell the product for
- Get Instant Results: See profit amount, margin %, and markup %
Profit Margin Formulas
Profit Margin:
Margin% = ((Selling Price - Cost Price) ÷ Selling Price) × 100
Example: (₹1,500 - ₹1,000) ÷ ₹1,500 × 100 = 33.33%
Markup Percentage:
Markup% = ((Selling Price - Cost Price) ÷ Cost Price) × 100
Example: (₹1,500 - ₹1,000) ÷ ₹1,000 × 100 = 50%
Selling Price from Margin:
Selling Price = Cost Price ÷ (1 - Margin% ÷ 100)
Example: ₹1,000 ÷ (1 - 0.3333) = ₹1,500
Benefits of Using Profit Margin Calculator
- ✓ Price Optimization: Find optimal selling price for desired profit
- ✓ Compare Products: See which products give best margins
- ✓ Business Planning: Calculate break-even and profit targets
- ✓ Free & Unlimited: No sign-up or limits
- ✓ Mobile Friendly: Works on all devices
Industry Standard Profit Margins
🛍️ Retail (General)20-50%
🍔 Restaurants3-5% (Net)
🏭 Manufacturing10-20%
📦 E-commerce15-30%
💼 Services10-20%
🏗️ Real Estate15-25%
Frequently Asked Questions
What is a good profit margin?
A good profit margin varies by industry. Retail: 20-50%, Manufacturing: 10-20%, Services: 10-20%. Generally, 20%+ is considered excellent, 10-20% is good, below 5% is low.
What's the difference between margin and markup?
Margin is profit as percentage of selling price. Markup is profit as percentage of cost price. For ₹1,000 cost and ₹1,500 selling price: Margin = 33.33%, Markup = 50%. Markup is always higher than margin.
How to calculate 30% margin on a product?
Divide cost price by 0.70. Example: ₹1,000 cost ÷ 0.70 = ₹1,428.57 selling price. Check: (₹1,428.57 - ₹1,000) ÷ ₹1,428.57 × 100 = 30% margin.
Is 50% markup the same as 50% margin?
No. 50% markup = 33.33% margin. Example: ₹1,000 cost + 50% markup = ₹1,500 selling price. Margin = (500 ÷ 1500) × 100 = 33.33%.
How to increase profit margin?
Increase selling price, reduce cost price, increase sales volume, reduce overheads, negotiate better supplier rates, or bundle products.
Is this profit margin calculator free?
Yes, completely free! No sign-up, no credit card, no hidden fees. Your data stays in your browser - we don't store anything.
🔒 Privacy Guarantee: Your business data never leaves your browser. We don't store, log, or share any information. 100% private and secure.
Margin vs Markup Comparison Table
| Markup % | Margin % | Cost ₹100 → Sell Price | Profit on ₹100 |
|---|---|---|---|
| 10% | 9.09% | ₹110 | ₹10 |
| 20% | 16.67% | ₹120 | ₹20 |
| 25% | 20.00% | ₹125 | ₹25 |
| 33.33% | 25.00% | ₹133.33 | ₹33.33 |
| 50% | 33.33% | ₹150 | ₹50 |
| 75% | 42.86% | ₹175 | ₹75 |
| 100% | 50.00% | ₹200 | ₹100 |
Optimize Your Business Pricing
Free profit margin calculator to find optimal prices and maximize your profits.