Worked example
If revenue is ₹1,00,000 and cost is ₹70,000, compare the ₹30,000 profit with margin and markup percentages.
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Business pricing
Profit Margin Calculator
Measure profit, margin, markup, and return on cost from cost and selling price.
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Result
Detailed breakdown
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Complete the fields and select Calculate to see a detailed answer.
Formula
How it is calculated
Profit Margin = (Selling Price − Cost Price) ÷ Selling Price × 100
Frequently asked questions
What is profit margin?
Profit margin measures profit as a percentage of selling price or revenue.
What is markup?
Markup measures profit as a percentage of cost. Margin and markup therefore have different denominators.
Can the calculator show a loss?
Yes. If selling price is below cost, profit and both percentages are shown as negative values.
Practical guidance
Use the Profit Margin Calculator with confidence
Calculate profit, margin, and markup. Review the example and limitations below before using the result for an important decision.
Assumptions and limits
The estimate excludes accounting adjustments and costs not entered, such as refunds, payment fees, credits, withholding, and jurisdiction-specific rules.
How to read the result
Calculations run from the values you enter using the formula described on this page. Inputs are processed in your browser and results are rounded for display.
Calculation methodology
Read our calculation methodology Educational estimate only. Verify regulated financial, tax, employment, or legal decisions with an official source or qualified professional.