How to Use the Margin Calculator

Calculate Margin — Enter revenue and cost to find profit margin, markup, and gross profit.
Convert Margin ↔ Markup — Quickly convert between margin percentage and markup percentage.
Find Selling Price — Enter cost price and desired margin to calculate the required selling price.

Margin vs Markup — What's the Difference?

Profit Margin

Margin = (Profit / Revenue) x 100

Profit as a percentage of selling price. If you sell for ₹100 and your cost is ₹60, margin = 40%.

Markup

Markup = (Profit / Cost) x 100

Profit as a percentage of cost price. If cost is ₹60 and profit is ₹40, markup = 66.7%.

Frequently Asked Questions

What is a good profit margin?

Good profit margins vary by industry. In India, retail typically has 2-5% net margin, FMCG 8-15%, IT services 15-25%, and SaaS 60-80% gross margin. A healthy gross margin for most businesses is 30-50%. Net margins above 10% are generally considered good.

What is the formula for profit margin?

Profit Margin = ((Revenue - Cost) / Revenue) × 100. For example, if you sell a product for ₹1,000 and it costs ₹600, your margin is ((1000-600)/1000) × 100 = 40%.

What is the difference between gross margin and net margin?

Gross margin = (Revenue - COGS) / Revenue. It only considers direct costs. Net margin = (Revenue - All Expenses) / Revenue. It includes operating costs, taxes, interest, depreciation. Net margin is always lower than gross margin.

How to convert margin to markup?

Markup = Margin / (100 - Margin) × 100. For example, 40% margin = 40/(100-40) × 100 = 66.7% markup. Conversely, Margin = Markup / (100 + Markup) × 100.

Why is margin always less than markup?

Margin is calculated on the selling price (a larger number), while markup is calculated on cost price (a smaller number). The same profit divided by a larger denominator (selling price) gives a smaller percentage. A 50% markup equals only 33.3% margin.

How to set the right selling price for my product?

Use the "Find Selling Price" mode: enter your cost and desired margin. Selling Price = Cost / (1 - Margin/100). Consider your target market, competitor pricing, and perceived value. For physical products, aim for 40-60% gross margin to cover operating expenses.

Frequently Asked Questions

What is a good profit margin?

What is the formula for profit margin?

Profit Margin = ((Revenue - Cost) / Revenue) × 100. For example, if you sell a product for ₹1,000 and it costs ₹600, your margin is ((1000-600)/1000) × 100 = 40%.

What is the difference between gross margin and net margin?

How to convert margin to markup?

Markup = Margin / (100 - Margin) × 100. For example, 40% margin = 40/(100-40) × 100 = 66.7% markup. Conversely, Margin = Markup / (100 + Markup) × 100.

Why is margin always less than markup?

How to set the right selling price for my product?

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Margin Calculator - Profit Margin & Markup