Pricing products
Find the selling price that gives the margin you need.
Profit Margin Calculator
Know your cost and want the price, or know both and want the margin. Margin and markup are shown side by side.
Your files stay with you. Your files never leave your browser. This tool runs on your device: nothing is uploaded to our servers, so there is nothing for us to store or see.
How to use it
- Pick what you want to find.
- Enter your cost price and either the selling price or the target.
- Read the price, profit, margin and markup.
Where it helps
Online selling
Check margins after marketplace fees and shipping are added to cost.
Wholesale quotes
Confirm a discounted bulk price still leaves a profit.
Good to know
Stays in your browser
Numbers you type are worked out on your device and never sent to our servers.
Margin is not markup
Adding 30% to cost gives only a 23% margin.
Count every cost
Packaging, delivery, fees and returns belong in the cost.
Questions people ask
How do you calculate profit margin and markup?
Margin is profit divided by the selling price. Markup is profit divided by the cost. Pick what you want: the margin from a cost and a price, or the price needed for a target margin or markup. Buying at ₹80 and selling at ₹100 is a 20% margin but a 25% markup, and the tool shows both side by side.
- 20% Margin at ₹80 to ₹100. Profit ÷ price.
- 25% Markup on same sale. Profit ÷ cost.
- 3 modes Margin or price. Target margin or markup.
- Pre-GST Prices. Add GST on the invoice.
What is the difference between margin and markup?
Margin is profit divided by the selling price. Markup is profit divided by the cost. Buying at ₹80 and selling at ₹100 gives ₹20 profit, which is a 20% margin and a 25% markup. Mixing the two up is one of the most common pricing mistakes in small businesses.
How do I price for a 30% margin?
Divide the cost by 0.70, that is, by one minus the margin. A cost of ₹700 needs a selling price of ₹1,000 for a 30% margin. Adding 30% to the cost would give ₹910, which is only about a 23% margin. Choose 'Price for a target margin' and the tool does this for you.
Does the result include GST and other costs?
No. It uses the cost and price you enter, before GST. Include packaging, shipping, payment gateway fees, marketplace commission and an allowance for returns in your cost. Then add GST on top of the selling price on the invoice, as the tool reminds you. Missing costs are the usual reason margins disappoint.
Why can't a margin be 100%?
A 100% margin would mean the whole selling price is profit, so the cost would have to be zero. For any real cost, the price would need to be infinite. The tool asks for a margin below 100%. Markup has no such limit: a 200% markup simply triples the cost.
What is a good profit margin for a small business?
It depends on the trade. Grocery and electronics shops often work on thin margins of 5 to 15%, while restaurants, salons, handmade goods and services can earn much more. Compare your margin with others in your trade, and make sure it covers rent, salaries and other fixed costs.
What is gross margin versus net margin?
Gross margin uses only the direct cost of the product. Net margin takes off every cost, including rent, salaries, marketing and tax. This tool works out the margin on a single item from its cost, so it's closer to gross margin. Your accounts show the net margin for the whole business.
How do I turn a markup into a margin?
Divide the markup by one plus the markup. A 25% markup is 0.25 divided by 1.25, which is a 20% margin. A 50% markup is a 33.3% margin, and a 100% markup is a 50% margin. Enter the cost and price here and both figures show side by side.
How do I price with a target markup?
Choose 'Price for a target markup', enter the cost and the markup percentage. A ₹400 cost with a 60% markup gives a ₹640 price. Many wholesalers and retailers quote markup because it's easy to add to a cost, but check the margin too so you know your real profit share.
How do marketplace fees affect my margin?
Marketplaces take commission, fixed fees and shipping charges from each sale, often 15 to 30% in all. Add them to your cost before calculating, or your margin will look much better than it is. Selling through your own website or WhatsApp often keeps more of each sale.
Can I check if a discount leaves me any profit?
Yes. Enter your cost and the discounted selling price to see the margin left. If a ₹1,000 item costs you ₹650 and you offer 20% off, the ₹800 price leaves a margin of about 19%. The discount calculator helps you work out the sale price first.
Should I price based on cost or on the market?
Use both. Your cost and target margin give you a floor below which you lose money. What customers will pay and what competitors charge give you a ceiling. Pricing between the two, and higher for better service or quality, is how most small businesses set prices.
Can I use it for services?
Yes. For a service, the cost is your time, materials and overheads for that job. If a website project costs you ₹30,000 to deliver and you want a 40% margin, the price should be ₹50,000. Many service businesses underprice because they forget to count their own time.
Is anything I enter stored?
No. The calculation runs in your browser and your costs and prices never reach our servers. There's no sign-up and nothing is saved after you close the page, so you can work on pricing that you'd rather keep confidential from competitors. Close the tab and the figures are gone.
Does it work on a phone?
Yes. The modes sit in a row of buttons, the number keypad opens for each price and the results show margin and markup side by side. It works in any mobile browser, which is handy when a supplier or wholesale buyer quotes a price on a call.
Is the profit margin calculator free?
Yes, it's free with no sign-up and no limit. It's one of the free business calculators from Marketiism. Marketiism, our paid software, adds GST billing, a catalogue and an online shop, and helps small businesses keep track of sales. This calculator itself needs no account and has no usage limit.
Want this inside your own account?
Marketiism keeps your invoice numbers, GST reports, UPI payment links and WhatsApp reminders in one place. Leave your details and we'll call to set it up for your business, or start the trial yourself.
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