Profit Margin Calculator

Profit margin is calculated as a percentage of the selling price: (Selling Price - Cost) / Selling Price × 100. Markup is calculated as a percentage of the cost price: (Selling Price - Cost) / Cost × 100. For example, if cost is ₹500 and selling price is ₹800, the margin is 37.5% and the markup is 60%.

A good profit margin varies by industry. Generally, a net profit margin of 10-20% is considered average, 20%+ is good, and 5% or below is low. Service businesses often have higher margins (30-50%), while retail typically has lower margins (5-15%).

If your selling price is less than your cost price, the calculator will show a negative profit (loss). The margin and markup will also be negative, indicating you're selling below cost. You may need to increase prices or reduce costs.

To find the selling price from a desired margin, use: Selling Price = Cost Price / (1 - Margin%). For example, if your cost is ₹500 and you want a 25% margin: Selling Price = 500 / (1 - 0.25) = ₹667.