20% Profit Margin Calculator
Standard retail margin
Quick Tip:
For every ₹1,000 cost, you need to sell at ₹1,250
to achieve 20% margin. Profit per unit: ₹250
For every ₹1,000 cost, you need to sell at ₹1,250
to achieve 20% margin. Profit per unit: ₹250
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20% Margin Selling Price Table
₹1,000 cost → Sell at: ₹1,250
₹5,000 cost → Sell at: ₹6,250
₹10,000 cost → Sell at: ₹12,500
₹25,000 cost → Sell at: ₹31,250
₹50,000 cost → Sell at: ₹62,500
₹1,00,000 cost → Sell at: ₹125,000
How to Calculate 20% Margin
Formula:
Selling Price = Cost Price ÷ (1 - Margin% ÷ 100)
Example: ₹1,000 ÷ (1 - 0.2) = ₹1,250
Markup Equivalent:
Markup% = (Margin% ÷ (100 - Margin%)) × 100
Example: 20% Margin = 25.00% Markup
Is 20% a Good Profit Margin?
Standard retail margin
Typical for: General Retail, E-commerce
- ✓ Good sustainable margin
- ✓ Tight margin requires volume sales
- ✓ Covers overheads and provides profit
FAQs about 20% Margin
How to achieve 20% profit margin?
Set selling price using formula: Cost ÷ (1 - 0.20). Example: ₹1,000 cost ÷ 0.80 = ₹1,250
What markup gives 20% margin?
25.00% markup on cost price gives 20% margin on selling price.
Is 20% margin good for small business?
20% is a decent margin for small businesses, especially with good volume.
How much profit on ₹10,000 with 20% margin?
Profit = ₹12,500 - ₹10,000 = ₹2,500
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