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Business Finance

Profit Margin Calculator

Calculate gross margin, markup, and profit margin percentages instantly. Make informed pricing decisions and track your business profitability.

Enter Your Numbers

Fill in any two values to calculate the third and analyze your margins

Select what you want to calculate from the inputs below
₹
The cost to produce or acquire the product
₹
The price at which you sell the product
₹
Direct profit amount (Selling Price - Cost Price)
Target margin to calculate required selling price or cost

Your Margin Analysis

Enter cost price, selling price, or profit to calculate margins and markups instantly.

Gross Margin % Markup % Profit / Loss Amount

Understanding Margins

  • Gross Margin(Profit ÷ Selling Price) × 100
  • Markup(Profit ÷ Cost Price) × 100
  • ProfitSelling Price - Cost Price
  • Healthy MarginVaries by industry
  • Retail20-50% margin
  • Services50-80% margin

Margin shows profitability; markup guides pricing strategy.

Margin vs Markup

  • MarginProfit as % of Selling Price
  • MarkupProfit as % of Cost Price
  • Example: Cost ₹80Selling Price ₹100
  • Gross Margin20% (₹20/₹100)
  • Markup25% (₹20/₹80)
  • Key InsightMargin is always lower than markup

Margin is more commonly used for financial reporting.