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Profit Margin Calculator
Optimize your pricing and maximize your profits instantly.
Gross Profit
₹ 50.00
Margin
33.33%
Markup
50.00%
Profit Margin vs. Markup Calculator
Understanding the difference between Margin and Markup is crucial for setting profitable prices. This calculator helps retailers and wholesalers determine their true profitability instantly.
What is Profit Margin?
Profit Margin is the percentage of revenue that is profit. It tells you how much of every rupee earned is yours to keep.
Margin = ((Revenue - Cost) / Revenue) × 100
What is Markup?
Markup is the percentage added to the cost price to get the selling price. It's commonly used in retail pricing.
Markup = ((Revenue - Cost) / Cost) × 100
Example: If you buy a product for ₹100 and sell it for ₹150:
• Your Profit is ₹50.
• Your Margin is 33.33% (₹50 is 33% of ₹150)
• Your Markup is 50% (₹50 is 50% of ₹100)
• Your Profit is ₹50.
• Your Margin is 33.33% (₹50 is 33% of ₹150)
• Your Markup is 50% (₹50 is 50% of ₹100)