Profit Margin Calculator
About Profit Margin Calculator
The Profit Margin Calculator helps you find your business’s profitability by calculating profit margin, profit amount, and selling price based on cost and revenue. It’s a must-have tool for retailers, wholesalers, and online sellers to make smart pricing decisions.
Formula (Simple Explanation)›
Profit Margin (%) = (Profit / Revenue) × 100
Where: Profit = Selling Price − Cost Price, and Revenue = Selling Price. The result shows how much profit you earn on every ₹100 of sales.
Example:
Input: If an item costs ₹800 and sells for ₹1,000
Output: Profit = ₹200 and Profit Margin = 20%.
Steps to Use:
- Enter your cost price (₹).
- Enter your selling price (₹).
- Click 'Calculate' to find profit, margin percentage, and total revenue.
- Use the results to adjust your pricing for better profitability.
Frequently Asked Questions
What is profit margin?›
Profit margin is the percentage of revenue that remains as profit after all costs and expenses are deducted. It helps measure how efficiently a business generates profit from sales.
How is profit margin different from markup?›
Markup is based on cost, while profit margin is based on selling price. For example, if you buy at ₹100 and sell at ₹120, your markup is 20% but your profit margin is 16.67%.
What is a good profit margin?›
It depends on the industry. Retail margins are usually 5–20%, while service-based businesses may have 30–50% or higher margins.
Can this calculator help with pricing decisions?›
Yes. You can use it to find the ideal selling price or profit margin for your business, ensuring you cover costs while staying competitive.
Does this calculator work for both goods and services?›
Absolutely. You can use it to calculate profit margins for products, services, projects, or even freelance work.