Profit Margin & Markup Calculator

Determine net gross profit amount, profit margin percentage, and cost markup percentage instantly.

Input Parameters

Cost Price (Net Purchase Cost)

₹

Selling Price (Gross Price)

₹

Calculation OutputLive Calculation

Gross Profit Amount₹200

Profit Margin (%)16.67%Profit ÷ Selling Price × 100

Cost Markup (%)20.00%Profit ÷ Cost Price × 100

Create GST Invoice for this Selling Price

Difference Between Profit Margin and Markup

Many business owners confuse Profit Margin with Markup, but they are measured against different bases:

Profit Margin (%)Profit ÷ Selling Price × 100Measures profit as a percentage of total revenue.

Cost Markup (%)Profit ÷ Cost Price × 100Measures how much price is increased over purchase cost.

Worked Numerical Example

If a retailer buys goods for ₹1,000 and sells them for ₹1,200:
• Profit = ₹1,200 - ₹1,000 = ₹200
• Margin = ₹200 ÷ ₹1,200 × 100 = 16.67%
• Markup = ₹200 ÷ ₹1,000 × 100 = 20.00%

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