This is the #1 mistake new sellers make.
Margin is profit as a percentage of the Selling Price.
Markup is profit as a percentage of the Cost Price.

[Image of Margin vs Markup Chart]

Formulas

Gross Profit = Selling Price - Cost Price
Margin % = (Gross Profit / Selling Price) × 100
Markup % = (Gross Profit / Cost Price) × 100

Example

You buy a shirt for ₹100 and sell it for ₹150.
Profit = ₹50.
Markup: (50/100) = 50%
Margin: (50/150) = 33.3%

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When Should You Use These Calculators?

Whether you're saving, spending, or investing — here's exactly when this calculator can help you make a smarter decision.

Analyzing Profit Margins

Calculate gross and net profit margins to understand how profitable your business really is.

Evaluating ROI on Investments

Estimate return on investment before committing money to marketing, equipment, or new projects.

Setting Business Growth Targets

Plan realistic revenue and profit goals using data-driven calculations.

Pricing Your Products or Services

Determine the right selling price by analyzing costs, markup, and desired profit.

Managing Business Taxes

Quickly estimate GST and other tax calculations to stay compliant and plan expenses.

Planning Inventory & Costs

Analyze cost per unit and total expenses to improve inventory and purchasing decisions.

Calculating Break-Even Points

Find out when your business will start making a profit based on costs and revenue.

Forecasting Business Revenue

Estimate future revenue and financial performance to guide long-term planning.

Comparing Business Strategies

Compare different pricing models, investments, or growth strategies before making decisions.

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Margin vs Markup: The Big Confusion