Profit Margin Calculator
Free profit margin calculator. Enter cost and revenue to get gross profit, profit margin percentage and equivalent markup — know what you really earn per sale.
About the Profit Margin Calculator
A profit margin calculator that turns cost and revenue into gross profit, the margin percentage on the selling price, and the equivalent markup on cost.
Profit margin answers the most basic business question: of every rupee a customer pays you, how much do you keep? Margin = (revenue − cost) ÷ revenue. Sell for ₹1,000 what costs you ₹700 and your margin is 30% — thirty paise of every rupee of sales is gross profit, available to pay overheads and leave a net profit.
Margin is routinely confused with markup, and the confusion costs money. Markup measures profit against cost: the same ₹300 profit on a ₹700 cost is a 42.9% markup but only a 30% margin. A shopkeeper who wants a '30% margin' and adds 30% to cost actually ends up with a 23% margin. This calculator shows both figures side by side so the distinction is always visible; if you think in markup terms, use the dedicated markup calculator, which works from cost and price.
Track margin at two levels: per product, to decide what to promote, reprice or drop; and blended across the business, to watch the trend — a slowly eroding margin usually means input costs are creeping up faster than your prices. Typical gross margins vary hugely by industry: grocery retail runs on 15–25%, apparel 40–60%, restaurants 60–70% on food (before heavy fixed costs), and software much higher. Compare yourself with your industry, not with a universal number.
How to use the Profit Margin Calculator
- Enter your basic details in the fields provided.
- Select the appropriate options from the dropdowns.
- View your precise calculation results instantly.
Worked example
cost ₹700, revenue ₹1,000 → profit ₹300, profit margin 30%, equivalent markup 42.86%.
Formula
Profit = revenue − cost. Margin % = profit ÷ revenue × 100. Markup % = profit ÷ cost × 100.Frequently asked questions
- What is the difference between margin and markup?
- Margin is profit as a share of the selling price; markup is profit as a share of cost. A ₹300 profit on a ₹700 cost sold at ₹1,000 is a 30% margin but a 42.9% markup. Using one when you mean the other systematically underprices your goods.
- What is a good profit margin?
- It depends entirely on the industry: 15–25% gross margin is normal in grocery retail, 40–60% in apparel, 60%+ in services and software. What matters most is your trend and how you compare with direct competitors.
- Is this gross or net margin?
- Gross — it considers only the direct cost of the goods sold. Net margin also subtracts overheads like rent, salaries and marketing from the profit before dividing by revenue.
- Is my financial data secure?
- Absolutely. All calculations happen entirely in your browser and none of your inputs are saved or sent to any server.
- Can I use this for official tax filing?
- While highly accurate for planning and estimation, always consult your CA or tax professional for final official filings.
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