Profit Margin Calculator
Calculate gross profit, margin and markup percentage from cost and selling price.
Profit margin is the percentage of revenue that remains as profit after costs. It is the most fundamental indicator of a business's financial health and pricing efficiency. Gross margin measures profitability before operating expenses; net margin after all expenses including taxes. This calculator computes all three margin types — gross, operating, and net — and helps you set prices that achieve your target margin.
📋 How to Use This Calculator
For margin calculation: enter revenue and cost figures. For pricing: enter your cost and target margin percentage to find the required selling price. The calculator shows gross margin (revenue minus COGS), operating margin (minus operating expenses), and net margin (minus taxes and interest). Switch between margin and markup — they are different: a 50% markup produces a 33.3% margin.
💡 Key Facts & Information
Margin vs markup: Margin = (Price − Cost) / Price × 100. Markup = (Price − Cost) / Cost × 100. A product costing ₹100 sold for ₹150: markup = 50%, margin = 33.3%. Retailers typically think in markup; investors think in margin. Typical Indian business margins: FMCG (Hindustan Unilever): gross ~50%, net ~15%. IT services (TCS, Infosys): net margin 20–25%. Retail: gross 25–40%, net 3–8%. Restaurant: gross 60–70%, net 5–10% (high gross, high operating costs). E-commerce: often negative or near-zero net margins despite growth. Manufacturing: gross 30–50%, net 8–15% depending on sector.