Free business pricing calculator

Profit Margin & Markup Calculator

See the real profit in a sale, compare margin with markup, or find the selling price required to protect a target margin.

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Pricing calculator

Calculate margin, markup, and selling price

₹
₹

Remember

Margin divides profit by selling price. Markup divides profit by cost. They are not interchangeable.

Instant result

Profit per sale

₹250

Profit margin

20.00%

Markup on cost

25.00%

Cost share of revenue

80.00%

Worked example

₹1,000 cost and ₹1,250 selling price

Profit is ₹250. Margin is ₹250 divided by ₹1,250, or 20%. Markup is ₹250 divided by ₹1,000, or 25%. The same sale therefore has a 20% margin and a 25% markup.

Read the margin vs markup guide
Instant recalculation as inputs change
Target selling-price mode
Indian number formatting
Copy-ready result summary

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FAQ

What is the difference between profit margin and markup?

Profit margin divides profit by selling price. Markup divides the same profit by cost price, so the percentages are different.

How do I calculate a selling price from a target margin?

Divide cost by one minus the target margin as a decimal. For a 20% target margin, selling price equals cost divided by 0.80.

Can profit margin be negative?

Yes. When selling price is below cost, profit and profit margin are negative, which indicates a loss.