Calculate profit amount, gross margin percentage and markup from cost price and selling price — or find the right selling price from your desired margin.
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost price. Both are shown for each calculation.
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Gross margin is profit divided by selling price. Markup is profit divided by cost price. A 25% margin equals a 33% markup. Use margin to understand what portion of revenue is profit; use markup to set prices from cost.
Kirana stores typically run 10–20% margin on FMCG goods. Garment shops run 30–50%. Mobile shops run 5–12%. Hardware shops run 20–35%. Wholesale traders often work at 8–15% margin on bulk orders.
Start from your cost price including purchase, transport and overhead. Add your desired margin. Check against market prices. For products with fixed MRP, work backwards from MRP to understand your margin at purchase price.
Profit margin is the percentage of profit you make from the selling price of a product. It tells you how much of every rupee you earn is actual profit after accounting for the cost of the product.
Example: Cost ₹800, Sell ₹1,000 → Profit ₹200 → Margin = 200 ÷ 1000 × 100 = 20%
Markup is the amount you add over the cost price to arrive at the selling price. It is expressed as a percentage of the cost price rather than the selling price.
Same example: Cost ₹800, Profit ₹200 → Markup = 200 ÷ 800 × 100 = 25%
| Term | Based On | Meaning |
|---|---|---|
| Margin | Selling price | Profit as % of selling price |
| Markup | Cost price | Profit added over cost price |
Profit margin is the percentage of profit relative to the selling price. Formula: Margin % = (Selling Price − Cost Price) / Selling Price × 100. A 20% margin on ₹1,000 selling price means ₹200 profit.
Margin is based on selling price. Markup is based on cost price. For cost ₹800 and selling price ₹1,000: margin = 20% but markup = 25%. They represent the same profit amount but from different bases.
Selling Price = Cost Price ÷ (1 − Desired Margin). For cost ₹800 and 20% target margin: Selling Price = ₹800 ÷ 0.80 = ₹1,000. Use the calculator tab "Margin → Selling Price" to compute this instantly.
No. Calculate profit margin using prices excluding GST. GST is a tax collected on behalf of the government — it is not part of your actual revenue or profit. Use ex-GST cost and ex-GST selling price for margin calculations.
Common mistakes: confusing margin with markup, ignoring GST in pricing, forgetting packaging/transport costs, giving discounts without checking final margin impact, and focusing only on sales amount instead of profit.
Yes. Wholesale traders can use the markup calculator to add a fixed percentage over their procurement cost. This ensures consistent pricing across large product catalogs without manual calculation for each item.
Ledgerly connects sales, purchase costs, inventory and expenses in one system. You can view revenue, understand sales patterns and track business performance — giving a clearer picture of actual profitability beyond one-off margin calculations.
Set purchase and selling prices in Ledgerly. It automatically tracks profit per sale, daily totals and monthly business performance without spreadsheets.