Business finance · Free calculator

Margin & markup calculator.

Understand what you earn on a sale, and why margin is different from markup.

Your numbers

Change an input to update your estimate. Your entries stay in this page.

Gross margin
20%
Profit / loss per unit
₹200.00
Markup on cost
25%
Selling price
₹1,000.00
Included cost
₹800.00

Margin uses the selling price. Markup uses cost. This result is before fixed overheads and tax.

Behind the result

How it works.

Profit = price − cost. Margin = profit ÷ price × 100. Markup = profit ÷ cost × 100.

Know the assumptions

Use amounts on the same tax basis, normally excluding recoverable GST. Include all variable costs you want to measure. This is a unit-level gross calculation, before fixed overheads and income tax.

A few useful answers

Common questions.

What is the difference between margin and markup?

Margin measures profit as a percentage of selling price. Markup measures the same profit as a percentage of cost.

Can the result show a loss?

Yes. If selling price is below cost, the profit, margin and markup are negative. A zero cost makes markup undefined.

The useful next read

Profit margin vs markup: stop pricing with the wrong percentage

Understand the two percentages with an ₹800 cost example, and translate a target margin into a selling price.

Read the guide
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