Calculate gross profit, margin % and markup from cost and selling price - or find the right selling price from a target margin.
If your margin % is X, your markup % is higher - and vice versa.
| Margin % | Markup % | Selling Price (on ₹100 cost) | Profit (on ₹100 cost) |
|---|---|---|---|
| 10% | 11.11% | ₹111.11 | ₹11.11 |
| 15% | 17.65% | ₹117.65 | ₹17.65 |
| 20% | 25.00% | ₹125.00 | ₹25.00 |
| 25% | 33.33% | ₹133.33 | ₹33.33 |
| 30% | 42.86% | ₹142.86 | ₹42.86 |
| 40% | 66.67% | ₹166.67 | ₹66.67 |
| 50% | 100.00% | ₹200.00 | ₹100.00 |
Get both profit margin % and markup % in one click - no need to use two different formulas or switch between tools.
Know your cost price? Enter a target margin and instantly get the selling price you must charge to hit that margin.
Know the market price and your desired margin? Work backwards to find the maximum cost you can afford to pay.
Choose what you want to find - margin & markup, selling price, or cost price.
Type in any two known values (cost, selling price, or margin target).
Profit amount, margin %, markup %, and the formula are all shown instantly.
Profit margin and markup are two distinct financial metrics that are frequently confused, yet each serves a different analytical purpose. Gross profit margin is calculated as (Revenue - Cost of Goods Sold) / Revenue x 100, expressing profit as a percentage of selling price. Markup, by contrast, expresses profit as a percentage of cost. A product bought for Rs. 100 and sold for Rs. 150 has a 50% markup but only a 33.3% gross margin. Understanding the difference is essential for pricing strategy, tender submissions, and GST compliance - areas where Indian businesses, particularly MSMEs, often make costly errors.
Industry benchmarks in India vary considerably. According to SEBI disclosures and NSE-listed company data, pharmaceutical companies typically achieve net margins of 15-25%, while FMCG giants like HUL and Nestle India report 10-15%. Retail and trading businesses, especially those on platforms like Flipkart or Amazon India, often operate on gross margins as low as 5-12% due to intense competition and logistics costs. Service businesses - IT, consulting, coaching - typically see margins of 20-40% because their cost structure is primarily labour.
Indian businesses must account for GST when computing true margins. A product sold at Rs. 118 inclusive of 18% GST has a pre-GST revenue of Rs. 100. Factoring GST into your cost and revenue calculations is critical to avoid overstating profitability - especially for businesses filing under GSTR-3B and reconciling with GSTR-2A.