Business
Profit Margin Calculator
Computes gross profit, profit margin (on revenue), and markup (on cost) from your revenue and cost figures.
Your details
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Gross profit
₹3,000
Profit margin (on revenue)
30.00%
Markup (on cost)
42.86%
On ₹10,000 revenue and ₹7,000 cost, your gross profit is ₹3,000 — a 30.0% margin on revenue, or a 42.9% markup on cost.
How this is calculated
Gross profit = Revenue − Cost. Margin% = Gross profit ÷ Revenue × 100. Markup% = Gross profit ÷ Cost × 100.
Want to understand this better?
Profit Margin vs Markup: The Difference That Costs Small Businesses Money
Frequently asked questions
Margin vs markup — what's the difference?
Margin is profit as a percentage of the selling price (revenue); markup is profit as a percentage of the cost. They're always different numbers for the same sale — margin is always lower than markup.
What's a good profit margin?
It varies enormously by industry — retail and grocery often run thin (2–5%), services and software often run much higher (20%+).
Does this include all business costs?
No — this is gross profit margin using only the direct cost you enter. Net margin would also subtract overheads, salaries, rent, and other operating expenses.