Profit Margin & Markup Calculator
Margin is profit as a share of the selling price; markup is profit as a share of cost. They're often confused — 25% markup is only a 20% margin.
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How it's calculated
- Profit = selling price − cost
- Margin = profit ÷ selling price × 100
- Markup = profit ÷ cost × 100
- Price for a margin m = cost ÷ (1 − m/100)
Worked example
Cost ₹800, price ₹1,000 → profit ₹200, margin 20%, markup 25%.
Load this example into the calculatorAssumptions and limits
- Per-unit figures; overheads aren't included unless you add them to cost.
Common questions
Can margin be more than 100%?
No — margin is a share of the selling price, so it can never reach 100%. Markup can be any size: selling at 3× cost is a 200% markup but a 66.7% margin.