Profit Margin & Markup Calculator
Profit Margin & Markup Calculator
Calculate your gross profit, profit margin percentage, and markup quickly for retail, trading, and manufacturing pricing.
Calculation Summary
Want to track your real sales, costs and profit automatically?
Say goodbye to manual calculators. Udhyami calculates real-time margins across your entire product inventory and invoices.
Try Udhyami FreeHow to Calculate Profit Margin & Markup
Many small business owners confuse Profit Margin with Markup. While both measure profitability, they use different baselines:
Profit Margin Formula
Margin % = (Profit ÷ Selling Price) × 100
If an item costs ₹100 and sells for ₹140, profit is ₹40. Margin = 40 / 140 = 28.57%.
Markup Formula
Markup % = (Profit ÷ Cost Price) × 100
On the same item, profit is ₹40 over cost ₹100. Markup = 40 / 100 = 40.00%.
Use cost and selling price on a consistent basis. This simple calculation excludes any costs you have not included and is not a complete measure of net profit.
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