Calculate gross margin, markup and profit, or the selling price for a target margin.
Margin = profit ÷ price; markup = profit ÷ cost. Cost ₹800 and price ₹1,000 gives profit ₹200.00, a 20% margin and 25% markup.
Margin and markup both describe profit, but against different bases. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. Choose the two values you know — cost and price, cost and margin, price and margin, or cost and markup — and the calculator works out the rest.
A 25% markup is only a 20% margin, so mixing the two up can cost you money. Use margin to compare profitability and markup to set prices. For taxes on the price use the Sales Tax Calculator; for sales incentives see the Commission Calculator.
The calculator applies the standard financial formulas step by step.
| Item | Value |
|---|---|
| Cost | ₹800.00 |
| Selling price | ₹1,000.00 |
| Gross profit | ₹200.00 |
| Gross margin (profit ÷ price) | 20% |
| Markup (profit ÷ cost) | 25% |
| Case | Gross profit |
|---|---|
| Cost 800, price 1,000 | ₹200.00 |
| Cost 800, 30% margin | ₹342.86 |
| Cost 800, 50% markup | ₹400.00 |
| Price 1,000, 40% margin | ₹400.00 |
| Cost 500, price 750 | ₹250.00 |
Margin is profit divided by the selling price; markup is profit divided by the cost. Markup is always the larger percentage.
(Price − cost) ÷ price × 100. A product costing ₹800 and selling at ₹1,000 has a 20% margin.
Divide the cost by (1 − margin). For a 25% margin on ₹75 cost: 75 ÷ 0.75 = ₹100.
It varies by industry — retail gross margins of 20–50% are common, software far higher. Compare with your sector.
Gross margin ignores overheads such as rent and salaries; net margin is after all costs and tax.
Because the same profit is divided by the smaller number (cost) rather than the larger one (price).
It uses the standard formula: margin = (price − cost) ÷ price markup = (price − cost) ÷ cost The full method and a worked example are shown on this page.
No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.
Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.
No. Everything is calculated in your browser and nothing you enter is uploaded or saved.
