Profit Margin & Markup Calculator
Calculate gross profit margin percentage, net profit amount, and cost markup percentage.
Calculation Breakdown
Calculation Formula & Methodology
Margin measures profit relative to selling price; markup measures profit relative to cost price.
What is Profit Margin?
Profit margin represents the percentage of total sales revenue that a company retains as net profit after deducting cost of goods sold.
Margin vs Markup Difference
Margin is calculated as Profit / Selling Price. Markup is calculated as Profit / Cost Price. A 50% markup equals a 33.33% margin.
Example Margin & Markup
Cost Price ₹800, Selling Price ₹1,200:
Yields a 33.33% profit margin.
Pricing Drivers
Pricing Strategy
Ensures selling prices account for overheads and target net profitability.
Frequently Asked Questions
Standard retail profit margins range from 15% to 30%, whereas software SaaS margins often exceed 70%.
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