Rahul M

Profit Margin vs Markup Calculator

Calculate profit, profit margin and markup from your cost price and selling price.

Inputs

The cost incurred to purchase or produce the product.

The price charged to the customer.


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Results


Profit


₹—


Profit Margin

—


Markup

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What the Results Mean

Profit is the difference between
selling price and cost price.

Profit Margin measures profit as a
percentage of the selling price.

Markup measures profit as a
percentage of the cost price.

Example

If a product costs ₹700 and is sold for ₹1,000:

  • Profit = ₹300
  • Profit Margin = 30%
  • Markup = 42.86%

Margin and markup are different percentages because
they use different bases.

Why both are needed:

Markup → pricing: “My cost is ₹700 and I want a 42.86% markup → selling price ₹1000.

Margin → profitability: “I sell for ₹1000; what percentage of my revenue is profit? → 30%.

A very useful way to remember it:
Markup starts with COST.
Margin starts with SALES..