Profit Margin Calculator

A profit margin calculator that turns cost and revenue into gross profit, the margin percentage on the selling price, and the equivalent markup on cost.

Profit margin answers the most basic business question: of every rupee a customer pays you, how much do you keep? Margin = (revenue − cost) ÷ revenue. Sell for ₹1,000 what costs you ₹700 and your margin is 30% — thirty paise of every rupee of sales is gross profit, available to pay overheads and leave a net profit.

Margin is routinely confused with markup, and the confusion costs money. Markup measures profit against cost: the same ₹300 profit on a ₹700 cost is a 42.9% markup but only a 30% margin. A shopkeeper who wants a '30% margin' and adds 30% to cost actually ends up with a 23% margin. This calculator shows both figures side by side so the distinction is always visible; if you think in markup terms, use the dedicated markup calculator, which works from cost and price.

Track margin at two levels: per product, to decide what to promote, reprice or drop; and blended across the business, to watch the trend — a slowly eroding margin usually means input costs are creeping up faster than your prices. Typical gross margins vary hugely by industry: grocery retail runs on 15–25%, apparel 40–60%, restaurants 60–70% on food (before heavy fixed costs), and software much higher. Compare yourself with your industry, not with a universal number.