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