Profit Margin Calculator

See your real margin, markup and profit per unit in one go.

Enter what a unit costs you and what you sell it for. You will get gross profit, net profit, margin, markup and the price below which the sale stops being worth making.

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What you paid to buy or make one unit
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Packing, shipping, marketing — anything beyond the unit cost

Margin and markup are not the same number

This trips up more businesses than any other pricing mistake. Margin is measured against the selling price; markup is measured against the cost. A product costing ₹100 and selling at ₹150 carries a 50% markup but only a 33.33% margin. If you price for a 50% margin thinking it means a 50% markup, you lose a third of the profit you planned for.

Gross profit versus net profit

Gross profit is revenue minus the cost of the goods themselves. Net profit is what survives after packing, shipping, marketing and every other expense of getting the product to the customer. Businesses that only track gross profit routinely discover they are running at a loss on their best-selling item.

What counts as an "other expense"

Anything you spend to complete the sale that is not the product cost: courier charges, packing material, payment gateway fees, marketplace commission, ad spend attributable to the order, and returns. Add them as a total and the net profit figure becomes something you can actually trust.

Your break-even selling price

The calculator gives you the price at which profit becomes exactly zero. Anything below it and you are paying for the privilege of making the sale. Keep this number in front of you during a negotiation.

Frequently asked questions

What is a good profit margin?
It depends entirely on the sector. Grocery retail runs on 2–5%, apparel on 30–50%, and software can exceed 70%. Compare yourself to your own category, not to a general benchmark.
Should I use margin or markup to set prices?
Set prices using markup because you start from a known cost, but measure performance using margin because that is what your P&L reports. Just never mix the two figures up.
Does this calculator include GST?
No. Use the GST Profit Calculator when GST is involved, because input tax credit changes the real profit substantially.
Why is my net profit negative?
Your total cost plus expenses exceeds your revenue. Either your other expenses are higher than you assumed, or the selling price is below the break-even price the calculator shows.