Profit Margin & Markup Calculator

A marketplace seller profit calculator that works backwards from the customer price to the rupees that actually land with you — net of product cost, marketplace fee, shipping, packaging and other costs — and reports both margin (on price) and markup (on cost).

Most sellers know their product cost but guess at what a sale actually earns them. The marketplace takes a commission, delivery eats into the price, packaging adds up — and the margin you think you're making on the selling price is not the margin you end up with. This calculator works backwards from the customer-facing price to the rupees that actually land with you: gross profit, the marketplace fee, total cost after shipping and packaging, net profit, and then the two numbers that pricing decisions really need — profit margin and markup.

The two percentages differ because they use different denominators. Profit margin is net profit ÷ selling price: of every rupee the customer pays, how much do you keep. Markup is net profit ÷ cost price: how much you earn on top of what the product cost you. A ₹1,000 sale of a ₹600 product with a ₹150 marketplace fee leaves ₹250 net — a 25% margin on the selling price but a 41.67% markup on cost. Confusing the two is the classic pricing error: aiming for a '30% margin' while adding 30% to cost gives you only a 23% margin. Both figures are shown here, labelled with their denominator.

Marketplace fees are the reason most Amazon India and Flipkart sellers under-price. Referral fees vary by category, and sellers also face closing fees, weight-based fulfilment charges, shipping subsidies, GST input cosupplies and coupon costs. Because these rates change and depend on your seller plan and fulfilment method, this calculator never assumes one — select Amazon or Flipkart and it asks for the fee you actually pay, and shows a disclaimer instead of a guess. If you're selling from your own store or comparing scenarios without a platform fee, choose Custom.

Use it before every listing launch to set a bottom-line price, when a marketplace announces a fee change, and while deciding whether to absorb or pass on shipping. The 'amount after marketplace fee' is what the marketplace actually pays you per sale — compare that with your product cost and other costs to see the true per-unit profit. That figure is before fixed costs like rent, staff and subscriptions (the break-even calculator handles those) and before income tax. Every calculation runs in your browser; nothing you enter is stored.