UtilNest

Profit Margin Calculator

Easily determine your profit amount, gross margin percentage, and markup percentage. Just enter your cost price and selling price, and we'll calculate the rest instantly.

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How to use Profit Margin Calculator

  1. 1

    Step 1

    Enter cost price

  2. 2

    Step 2

    Enter selling price

  3. 3

    Step 3

    See profit/margin/markup instantly

Understanding Margin vs. Markup

Margin and markup are two ways to look at profit. Margin is your profit divided by the selling price, while markup is profit divided by the cost price. For the exact same profit, your markup percentage will always be higher than your margin percentage because cost is lower than selling price.

Examples

Standard Retail

Input
Cost: ₹800, Sell: ₹1,000
Output
Profit: ₹200, Margin: 20%, Markup: 25%

Frequently asked questions

What is profit margin?

Profit margin is profit divided by selling price × 100. If you sell ₹1,000 worth for ₹1,200, margin is ₹200/₹1,200 = 16.67%.

What is the difference between margin and markup?

Margin uses selling price as denominator; markup uses cost price. A 20% margin equals a 25% markup.

Cost ₹800, sell ₹1,000 — what is the margin?

Profit ₹200. Margin = ₹200/₹1,000 = 20%. Markup = ₹200/₹800 = 25%.

Category: Business

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Last updated 10 August 2026