Profit Margin – Free Online Utility
Calculate gross profit, net profit, and profit margins.
₹
₹
Gross Profit
₹50.00
Profit Margin
33.33%
Markup
50.00%
What is a Profit Margin Calculator?
A Profit Margin Calculator helps businesses determine their profitability. By inputting the cost of a product or service and its selling price, the calculator determines the gross profit, profit margin (profit as a percentage of revenue), and markup (profit as a percentage of cost).
Margin vs. Markup
While often used interchangeably, margin and markup are different metrics. Margin shows the percentage of revenue that is profit. Markup shows the percentage of cost that is added to arrive at the selling price. Understanding both is critical for setting optimal pricing strategies in retail and e-commerce.
Frequently Asked Questions
Profit margin is a measure of profitability. It is calculated by finding the profit as a percentage of the revenue. For example, if you sell something for $100 and it cost you $70 to make, your profit is $30, and your profit margin is 30%.
Margin shows your profit as a percentage of your selling price (Revenue). Markup shows your profit as a percentage of your cost. Using the example above: Profit is $30, Cost is $70. The Margin is 30% ($30/$100), but the Markup is ~42.8% ($30/$70).
If you know your desired margin and your cost, you can calculate the required revenue (selling price) by rearranging the formula: Price = Cost / (1 - Margin/100). This calculator helps you adjust prices to hit your target margins.
Related Free Tools
- ROI Calculator — Calculate Return on Investment (ROI) for any business or asset.
- Break-even Calculator — Find out exactly how many units you need to sell to break even.