Business · Pricing & Profit

Profit Margin & Markup Calculator

Find the profit margin and markup from a cost and selling price, or set a price from your cost and a target margin or markup — or work back to the most you can pay for stock at a given price. Includes the tax-inclusive selling price (GST/VAT) and profit across a quantity, and converts between margin and markup.

Your inputs

Quick start — try a typical case

I Know

Currency

Cost per Unit

What the item costs you (excluding recoverable GST/VAT).

Selling Price per Unit (before tax)

₹ 1 thousand

Units Sold

GST / VAT on the Selling Price

Shows the price your customer pays; margin is always worked out before tax.

Your result Live

Profit Margin

40.00%

₹400 profit on each ₹1,000 sale

Margin (profit ÷ price): 40.00%
Markup (profit ÷ cost): 66.67%
Profit per Unit: ₹400
Price Including 18% Tax: ₹1,180 (tax ₹180)

Cost · 60%₹600
Profit · 40%₹400

Margin ↔ markup

7 rows

Margin	Equals markup	Price for this cost
10%	11.1%	₹666.67
20%	25.0%	₹750
25%	33.3%	₹800
30%	42.9%	₹857.14
40%	66.7%	₹1,000
50%	100.0%	₹1,200
60%	150.0%	₹1,500

Margin and markup describe the same profit differently: a 50 % markup is only a 33.3 % margin. Price from your target margin, not by adding the margin % to cost.

How this is calculated

Margin = (Price − Cost) ÷ Price · Markup = (Price − Cost) ÷ Cost · Price = Cost ÷ (1 − margin) = Cost × (1 + markup)

Margin → markup: markup = margin ÷ (1 − margin)
Markup → margin: margin = markup ÷ (1 + markup)

Gross margin is the share of each sale you keep after the cost of the goods; markup is how much you add on top of cost. They're easy to confuse: adding 40 % to cost gives a 28.6 % margin, not 40 %. To hit a target margin, divide the cost by (1 − margin).

Assumptions & sources

Per-unit figures before GST/VAT (input tax credit means tax isn't a cost for a registered business).
Gross margin only — overheads, shipping and payment fees aren't deducted.

1Accounting Standards — revenue and cost of goods sold — Institute of Chartered Accountants of India

Calculator ID BIZ-MARGIN-001 · version 1.0.0

Common questions

What's the difference between margin and markup?

Both use the same profit, but margin divides it by the selling price and markup by the cost. ₹600 cost sold at ₹1,000 is a 40 % margin and a 66.7 % markup.

How do I price for a 30 % margin?

Divide your cost by 0.70. A ₹700 cost needs a ₹1,000 price for a 30 % margin.

Should GST be included in margin?

No — for a GST-registered business the tax collected is passed to the government, so margins are calculated on the price before tax.