Power Calculators

🏷️ Margin Calculator (Gross Margin & Markup)

Margin and markup are not the same — price your products correctly.

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Formula at a glance

Margin & Markup Calculator: Gross margin — (price − cost) / price × 100. Example: Cost ₹80, price ₹100 → Gross margin: 20%
How the Margin & Markup Calculator works: Gross margin — (price − cost) / price × 100

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📘 About the Margin Calculator

Gross margin is profit as a share of the selling price; markup is profit as a share of the cost. A product that costs ₹80 and sells for ₹100 has a 20% margin but a 25% markup. Mixing them up is one of the commonest pricing mistakes in retail and small business.

Enter cost and price to get margin, markup and profit — or enter the cost and a target margin or markup to get the selling price, or the price and margin to get the maximum cost. A table shows the price needed for common margins.

🧮 Formula

Gross margin
(price − cost) / price × 100
Markup
(price − cost) / cost × 100
Price for a margin
price = cost / (1 − margin)

✏️ Worked examples

Cost ₹80, price ₹100

You enter
Currency₹ Indian rupee
I knowCost and selling price
Cost80
Selling price100
Margin or markup25%
Add tax / GST (optional)0%
You get
Gross margin20%
Markup25%
Profit per item₹20.00
Selling price₹100.00
Cost₹80.00

Margin 20%, markup 25%.

Price for a 25% margin on ₹80

You enter
Currency₹ Indian rupee
I knowCost and target margin
Cost80
Selling price100
Margin or markup25%
Add tax / GST (optional)0%
You get
Gross margin25%
Markup33.33%
Profit per item₹26.67
Selling price₹106.67
Cost₹80.00

Price ₹106.67.

🧭 How to use this calculator

What you enter

  • Currency
  • I know
  • Cost
  • Selling price
  • Margin or markup (%)
  • Add tax / GST (optional) (%)

What you get

  • Gross margin
  • Markup
  • Profit per item
  • Selling price
  • Cost

❓ Frequently asked questions

What is the difference between margin and markup?

Margin divides profit by the selling price; markup divides it by the cost. Margin is always smaller than markup.

What is a good profit margin?

It varies widely: grocery retail 2–5% net, restaurants 3–10%, software 20%+. Gross margins are higher than net margins.

How do I convert markup to margin?

Margin = markup ÷ (1 + markup). A 50% markup is a 33.3% margin.

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