ToolFoxMargin Calculator
Work out profit margin and markup percentage from a cost price and selling price, for pricing and invoicing.
- Profit margin
- 20.00%
- Markup
- 25.00%
- Profit per unit
- ₹20
How it works
Profit is simply selling price minus cost price. Margin expresses that profit as a percentage of the selling price — Margin % = (Price − Cost) ÷ Price × 100 — answering "what share of what I charged is profit?" Markup expresses the same profit as a percentage of the cost price instead — Markup % = (Price − Cost) ÷ Cost × 100 — answering "how much did I add on top of what it cost me?" The two numbers are always different for the same sale.
Example
An item costing ₹80 sold for ₹100 has a profit of ₹20: that is a 20% margin (₹20 is 20% of the ₹100 selling price) but a 25% markup (₹20 is 25% of the ₹80 cost) — the same ₹20 profit, described two different ways.
Frequently asked questions
Why are margin and markup different numbers for the same sale?
They divide the same profit by two different bases — margin divides by selling price, markup divides by cost price — so markup is always the larger percentage whenever there is a profit.
What if the selling price is lower than the cost?
Both profit and margin/markup come out negative, correctly showing a loss rather than an error — useful for spotting underpriced items.
Which one should I use to set prices?
If you know your target margin (say, 30% of the selling price), it is easier to work from markup: divide it out to find the cost-based multiplier to apply.
Does this include taxes or fees?
No — this compares cost price and selling price only; GST, payment-gateway fees or shipping costs would need to be added to either figure separately.
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