How to use the Profit Margin Calculator
- Enter your cost price per unit.
- Enter the selling price per unit.
- Enter how many units you sold.
- See margin, markup, total revenue and total profit.
How it's calculated
Show the formula
Margin = (price − cost) ÷ price × 100
Markup = (price − cost) ÷ cost × 100
Markup = (price − cost) ÷ cost × 100
A 50% markup gives only a 33.3% margin.
Worked example
These are the example numbers the calculator opens with. Change any of them above to see your own result.
You enter
| Cost price | Rs 1,200 |
|---|---|
| Selling price | Rs 1,650 |
| Units sold | 40 |
You get
| Profit margin | 27.27% |
|---|---|
| Profit per unit | Rs 450 |
| Markup on cost | 37.5% |
| Total revenue | Rs 66,000 |
| Total profit | Rs 18,000 |
Tips
- Include delivery, packaging and platform fees in your cost for a true margin.
- Margin and markup are different; don't mix them up when pricing.
Frequently asked questions
What is a good profit margin?
It depends on the business: grocery shops may run on 5–10%, while services and online products often aim for 30% or more.
Why is margin lower than markup?
Margin divides profit by the bigger number (price), markup divides by the smaller one (cost).
Does this include overheads?
No, it is per-unit gross profit. Rent and salaries are covered in the break-even and cash flow calculators.