📈 Profit Margin Calculator

Calculate profit, profit percentage, gross margin, and markup instantly.

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Profit Margin Calculator

Enter cost and selling price for detailed profit analysis

Profit / Loss
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Profit %
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Gross Margin
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Markup
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Cost Price
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Selling Price
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What is a Profit Margin Calculator?

A Profit Margin Calculator is an essential business tool that helps you determine the profitability of any product or service. By entering the cost price and selling price, you can instantly calculate profit amount, profit percentage, gross margin, and markup — all key metrics for business decision-making.

Key Formulas Used

  • Profit = Selling Price − Cost Price
  • Profit % = (Profit / Cost Price) × 100
  • Gross Margin % = (Profit / Selling Price) × 100
  • Markup % = (Profit / Cost Price) × 100 (same as Profit %)

Profit % vs. Gross Margin

These two metrics are often confused but calculated differently. Profit Percentage is calculated on the cost price, while Gross Margin is calculated on the selling price. For example, if cost is ₹500 and selling price is ₹750:

  • Profit = ₹250, Profit % = 50% (on cost)
  • Gross Margin = 33.33% (on selling price)

Who Uses This Calculator?

  • Retailers and wholesalers to price products correctly.
  • E-commerce sellers to determine profitable selling prices.
  • Business owners to analyse product performance.
  • Students learning business and commerce concepts.
  • Freelancers to calculate service pricing and margins.

Frequently Asked Questions

What is a good profit margin?+
A "good" profit margin varies by industry. Retail typically sees 2–5% net margin, while software can be 20–30%+. Gross margins above 50% are considered healthy for many businesses. Use our calculator to track your margins over time.
What is the difference between profit and markup?+
Markup is the amount added to the cost price to arrive at the selling price, expressed as a percentage of the cost. Profit margin (gross margin) is the profit expressed as a percentage of the selling price. Both measure profitability but from different perspectives.
Can this calculate loss as well?+
Yes! If the selling price is lower than the cost price, our calculator will automatically show the loss amount and loss percentage, clearly labelled with a "Loss" indicator.
How do I find the selling price for a desired margin?+
To achieve a desired gross margin: Selling Price = Cost Price / (1 - Desired Margin%). For a 30% gross margin on a ₹700 item: Selling Price = 700 / 0.70 = ₹1,000. You can verify this using our calculator.