Profit Margin Calculator
Calculate profit, profit margin (% of revenue) and markup (% of cost) from your revenue and cost.
Formula last reviewed 4 August 2026 · How we verify our calculators
Profit
- Profit margin (% of revenue)
- 30.0%
- Markup (% of cost)
- 42.9%
Updates live as you type
Frequently asked questions
Margin is profit as a percentage of the selling price, while markup is profit as a percentage of cost. The same ₹300 profit on a ₹700 cost item is a 30% margin but a ~42.9% markup.
Use margin when you target a percentage of revenue (most retail and accounting), and markup when you add a fixed percentage onto cost. Confusing them leads to underpricing.
Profit is simply revenue minus cost. Margin and markup then express that profit relative to revenue and cost respectively.
No — margin is capped below 100% because profit cannot exceed revenue. Markup, however, can exceed 100% when the selling price is more than double the cost.
Margin and markup, side by side
Few business numbers are confused as often as margin and markup — and the mix-up quietly erodes profits. This calculator shows both from a single revenue and cost input so you can price with confidence.
Profit margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. They describe the same profit from two different bases. A product costing ₹700 and sold for ₹1,000 earns ₹300 profit — a 30% margin but roughly a 42.9% markup. Quote the wrong one and you can leave real money on the table.
Enter your figures to see the profit and both percentages clearly labelled. Use margin when you plan around revenue (the convention in retail and accounting) and markup when you set prices by adding a percentage to cost.
Why the gap between margin and markup widens
Notice that margin and markup start close together at low percentages but pull apart sharply as they rise. At a 10% margin, markup is only about 11.1% — barely different. But push the margin to 90%, and the corresponding markup is 900%, since the denominator (1 − margin%) shrinks toward zero. This is exactly why quoting "we work on a 50% margin" and "we work on a 50% markup" describe very different profitability, and why a salesperson or supplier using the wrong term can quietly misprice a deal by a large amount without anyone noticing until the accounts are reviewed.
To work the other way — finding a selling price from a target margin or markup — use the selling price calculator, which keeps the two methods distinct so you never apply the wrong formula. Checking both figures together is also a useful sanity check when reviewing supplier quotes or a colleague's pricing sheet, since a number quietly labelled the wrong way can make a deal look more or less profitable than it actually is.