Profit Margin Calculator
Enter cost and selling price to see profit, margin % and markup %. Or flip it: enter cost and the margin you want, and get the price to list.
Inputs
What do you want?
Everything it costs you to have one unit ready to ship: product, packaging, inward shipping.
Result
Profit per unit
₹250.00
₹650.00 price − ₹400.00 cost
Margin = profit ÷ selling price. Markup = profit ÷ cost. The same ₹250.00 profit is a smaller margin than markup because the price is bigger than the cost.
What this profit margin calculator does
Two modes. Margin from price takes what a unit costs you and what you sell it for and returns the profit per unit, the profit margin (profit as a share of the selling price) and the markup (profit as a share of cost). Price from margin runs backwards: give it your cost and a target margin or markup, and it returns the exact selling price plus a rounded and a charm-priced version (ending in 9). All amounts are rupee formatted with Indian grouping.
Profit = Price − Cost
Margin % = Profit ÷ Price × 100
Markup % = Profit ÷ Cost × 100
Price for a target margin m = Cost ÷ (1 − m)
Price for a target markup k = Cost × (1 + k)How to use it
Work out the true cost per unit
Product + packaging + inbound shipping + per-unit labour. If you make the product, include materials at what you actually paid.
Pick a mode
Checking an existing price? Use 'Margin from price'. Setting a new one? Use 'Price from margin' and choose whether your target is a margin or a markup.
Read the result
Profit per unit, margin and markup side by side. In reverse mode you also get the rounded-up price and a charm price that never dips below your target.
Worked example
Worked example
Margin from price. A kurta costs ₹400 landed and sells at ₹650.
Profit = 650 − 400 = ₹250. Margin = 250 ÷ 650 = 38.46%. Markup = 250 ÷ 400 = 62.5%.
Price from margin. Same ₹400 cost, but the seller wants a 40% margin to absorb ads and returns.
Price = 400 ÷ (1 − 0.40) = 400 ÷ 0.60 = ₹666.67. Rounded up: ₹667. Charm price: ₹669. Check: (669 − 400) ÷ 669 = 40.2% — still on target.
Had they multiplied by 1.4 instead, they would list at ₹560 and earn a 28.57% margin while believing it was 40%.
Margin vs markup at a glance
| Markup on cost | Margin on price | Cost ₹400 sells at |
|---|---|---|
| 25% | 20% | ₹500 |
| 50% | 33.33% | ₹600 |
| 66.67% | 40% | ₹666.67 |
| 100% | 50% | ₹800 |
| 150% | 60% | ₹1,000 |
| 300% | 75% | ₹1,600 |
Margin = markup ÷ (1 + markup). Markup = margin ÷ (1 − margin).
Why margin matters more than markup online
Almost every per-order cost in e-commerce is a percentage of the selling price, not of cost: payment gateway fees, marketplace commissions, ad spend measured as ROAS, coupon discounts. If you think in margin you can subtract them directly. A 38% margin minus a 2% gateway fee minus a 10% coupon leaves 26% — that arithmetic does not work with markup. The product pricing calculator does all of this in one step, including packaging, shipping and a COD line. And if you run ads, the ROAS calculator turns your margin into a break-even ROAS.
Frequently asked questions
What is the difference between margin and markup?
Both describe the same profit, divided by different bases. Margin is profit ÷ selling price; markup is profit ÷ cost. Buy at ₹400, sell at ₹650: profit ₹250, margin 38.46%, markup 62.5%. Margin is always the smaller number (except at zero profit). Accountants, marketplaces and ad dashboards talk in margin; suppliers and wholesalers often talk in markup.
How do I price for a 40% margin?
Divide cost by (1 − 0.40). A ₹400 cost ÷ 0.60 = ₹666.67, so list at ₹667 or ₹669. Do not multiply cost by 1.40 — that gives ₹560, which is a 40% markup and only a 28.6% margin.
What should count as 'cost'?
Everything it takes to have one unit ready to ship: the product or raw materials, packaging, inbound shipping from your supplier, and any per-unit labour. Do not include monthly costs like rent or subscriptions here — cover those with the total profit across all orders.
Is a 100% margin possible?
No. A 100% margin would mean the cost is zero. A 100% markup is common (sell at double the cost) and equals a 50% margin. The calculator refuses margins of 100% or more for this reason.
What is a good profit margin for an online store in India?
There is no single right answer — it depends on category, ad spend, returns and how much you ship for free. Rather than a benchmark, work backwards: list your per-order costs (including COD fees, RTO losses and gateway fees), decide the profit you need per order, and use the product pricing calculator to find the price that delivers it.
Put this to work on a free online store
Once the margin works, list the product where the margin stays yours. A free SitesPlaced store charges 0% commission with unlimited products, so the number you calculated here is the number you keep.
Open your free store →₹0 to publish, unlimited products, 0% commission. Razorpay, COD, WhatsApp checkout, Shiprocket and Shipmozo included free. ₹499/month (early-bird; ₹999 after the first 30 stores) adds a custom domain, branding removal, AI copy, analytics, Meta Pixel + CAPI and WhatsApp Business API alerts. See pricing.
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