11 / Margin calculator
See the margin, not just the profit.
Enter what an item cost and what you sell it for. The page shows the profit in rupees, the margin on the selling price, and the markup on the cost. You can also start from a target margin or markup and get the selling price.
- Selling price
- ₹100.00
- Profit
- ₹20.00
- Margin
- 20%
- Markup
- 25%
This is an estimate for planning. It is not a bank quote, a tax invoice, or financial advice. The calculation stays in your browser.
How to use Margin calculator
1. Pick how you want to start
Use cost and selling price when the bill already exists. Use a target margin or markup when you are setting the price.
2. Enter the rupee amounts
Cost is what you paid. Selling price is what the customer pays before you think about GST, unless you want GST inside the price.
3. Read margin and markup separately
Margin divides profit by the selling price. Markup divides the same profit by the cost. They are not the same percentage.
Margin and markup are different
Buy at ₹80 and sell at ₹100. Profit is ₹20. Margin is 20 ÷ 100, which is 20%. Markup is 20 ÷ 80, which is 25%. Quoting a 25% margin when you mean a 25% markup prices the item too low.
Price from a target margin
Selling price = cost ÷ (1 − margin). A 20% margin on an ₹80 cost is ₹100. The margin has to stay under 100%, because a 100% margin would mean the cost was zero.
GST sits outside this sum
This page compares cost and selling price as you type them. If the selling price includes GST, remove the tax with the GST calculator first, then come back. Mixing a tax-inclusive price with a tax-exclusive cost makes the margin look smaller than the trade really is.
Questions
What is the difference between margin and markup?
Margin is profit divided by selling price. Markup is profit divided by cost. ₹20 profit on a ₹100 sale is a 20% margin and a 25% markup if the cost was ₹80.
How do I get a selling price from a margin?
Choose target margin, enter the cost and the margin percent. Selling price = cost ÷ (1 − margin ÷ 100).
Does this include GST?
No. Add or remove GST on the GST calculator, then use the taxable amounts here.
Can the result be a loss?
Yes. If the selling price is below cost, profit is negative and both percentages are negative.
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