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

  1. Enter cost price and selling price.
  2. Read the profit margin at the top of the result, with profit per unit, markup on cost underneath. It updates as you type.
  3. 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 margin25%
Profit per unit₹250
Markup on cost33.33%

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.