Profit Margin Calculator
Profit, gross margin and markup from cost and selling price, so you price correctly and never confuse margin with markup.
Profit margin
—
Profit per unit—
Markup on cost—
How to use the Profit Margin calculator
- Enter cost price and selling price.
- Read the profit margin at the top of the result, with profit per unit, markup on cost underneath. It updates as you type.
- Change one input at a time to see what moves the answer most, then save the result with Copy link or Download PDF.
About this tool
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 25% markup is only a 20% margin, a common pricing mistake.
Formula: Margin = (price − cost) ÷ price; markup = (price − cost) ÷ cost
Worked example
With cost price of ₹750 and selling price of ₹1,000:
| Profit margin | 25% |
| Profit per unit | ₹250 |
| Markup on cost | 33.33% |
Built and reviewed by Savitar Finance (savitarfinance@gmail.com). Rules and rates last checked October 2026. How we calculate · Report a problem
Questions people ask
What is the difference between margin and markup?
Margin divides profit by the selling price; markup divides it by cost. The same sale has a smaller margin than markup.
Should I calculate margin before or after GST?
Before GST. GST collected belongs to the government, so use prices excluding GST.