HaatBeat Calculators

Profit margin calculator

Work out the profit, margin and markup from what an item costs you and what you sell it for.

ReviewedAny currency
₹
What the item costs you.
₹
What you sell it for.
Profit margin
20%

Selling for ₹1,000.00 something that costs ₹800.00 is a profit of ₹200.00: a 20% margin and a 25% markup.

Margin and markup
Cost₹800.00
Profit₹200.00
Markup (profit ÷ cost)25%
Margin (profit ÷ price)20%
Selling price₹1,000.00
Gross margin on one item, before tax, overheads and other costs.

How it's calculated

Profit = Price − Cost Margin = Profit ÷ Price Markup = Profit ÷ Cost

Margin compares profit with the selling price; markup compares it with the cost. For the same item, margin is always the smaller percentage.

Assumptions

  • Gross margin on a single item, before overheads and tax.
  • Price and cost are in the same currency and exclude sales tax.

Worked example

An item that costs 80 and sells for 100 makes 20 profit: a 20% margin and a 25% markup.

Questions

What is the difference between margin and markup?

Margin is profit divided by the selling price. Markup is profit divided by the cost. A 25% markup gives a 20% margin.

Can the margin be negative?

Yes. If the price is below the cost, the result is a loss and the margin is negative.

Should I include tax?

Use prices without sales tax, VAT or GST, because the tax is passed on and is not profit.

Sources

Last reviewed 1 October 2026 by Sachin. How we check calculators.