Retail product
A product costs ₹700 and sells for ₹1,000. The profit is ₹300. Relative to selling price, that is a 30% margin. Relative to cost, it is a 42.86% markup.
- Cost
- ₹700
- Selling price
- ₹1,000
- Profit / loss
- ₹300
- Margin
- 30%
- Markup
- 42.86%
Margin calculator
Price with confidence using real margin and markup numbers.
Free margin calculator for agencies, retailers and service businesses. Find margin percentage and profit from cost and selling price.
Margin calculator
Cost and selling price, with live profit margin and markup.
Profit = Selling price − Cost
Change either amount to see the result instantly. Keep cost and selling price on the same basis.
Cost vs selling price marginInstant profit amountUseful for quotes and invoices
Your margin breakdown
Profit- Profit
- ₹300.00
- Profit margin
- 30.00%
- Markup
- 42.86%
The amount remaining after the cost you entered.
Profit ÷ Selling price × 100
Profit ÷ Cost × 100
Use your selling price as the starting invoice amount. Cost stays in your internal calculation.
Create invoice from this resultMargin and pricing guide
Calculate margin from cost and selling price
A margin calculator shows profit margin, markup and profit from cost and selling price. Enter the cost of your item, order or service and the amount you plan to charge. The calculator subtracts cost from selling price, then shows that profit as a percentage of each amount.
Freelancers, shops, agencies, contractors and small businesses can use it before quoting or invoicing. Use cost and selling price for the same scope so the comparison is meaningful. The result changes as you edit either field, making it easy to compare a proposed price with an updated cost estimate.
Margin calculator examples for products and services
These illustrative examples show profit, margin and markup side by side. They use the costs entered for each sale; they are not recommended profit targets or forecasts for your business.
Service quote
A service has an estimated cost of ₹6,000 and a quoted price of ₹10,000. Profit is ₹4,000, margin is 40% and markup is 66.67% on the entered cost.
- Cost
- ₹6,000
- Selling price
- ₹10,000
- Profit / loss
- ₹4,000
- Margin
- 40%
- Markup
- 66.67%
Selling below cost
An order costs ₹1,200 but sells for ₹1,000. The ₹200 loss is a negative 20% margin and a negative 16.67% markup. The calculator keeps these values negative.
- Cost
- ₹1,200
- Selling price
- ₹1,000
- Profit / loss
- −₹200
- Margin
- −20%
- Markup
- −16.67%
Profit margin and markup formulas
Both percentages start with the same profit amount. The denominator changes: margin uses selling price, while markup uses cost. Keep that distinction clear when reviewing a price with your team.
Profit
Selling price − Cost
₹1,000 − ₹700 = ₹300
Margin (%)
Profit ÷ Selling price × 100
₹300 ÷ ₹1,000 × 100 = 30%
Markup (%)
Profit ÷ Cost × 100
₹300 ÷ ₹700 × 100 = 42.86%
Why a 30% markup is not a 30% margin
A 30% markup on a ₹700 cost adds ₹210, producing a selling price of ₹910. The profit is ₹210, but that profit is only 23.08% of the ₹910 selling price. Margin and markup answer different questions even though they describe the same sale.
To see a 30% margin with the same ₹700 cost, the selling price would be ₹1,000. The ₹300 profit is 30% of the selling price and 42.86% of cost. Using the wrong percentage can change a quoted price substantially.
Label the percentage you are discussing. If someone asks for a margin, do not simply add that percentage to cost and assume the result will match.
How to use the calculator
- Enter the cost for the item, order or project you want to compare.
- Enter the selling price for that same scope.
- Review profit, margin and markup in the live breakdown.
- Update either amount to compare a different price or cost estimate.
- Copy or download the result, or carry the selling price into the invoice maker.
No signup is needed for the calculation. Invoice saving and billing history are separate account features.
See how a discount changes margin
Start with cost of ₹700 and selling price of ₹1,000. Profit is ₹300 and margin is 30%. If the selling price falls to ₹900 while cost stays at ₹700, profit falls to ₹200 and margin becomes 22.22%. The ₹100 reduction in selling price removes ₹100 from profit in this comparison.
You can test a cost change in the same way. If cost rises to ₹800 and selling price stays at ₹1,000, profit is ₹200 and margin is 20%. The calculator shows the effect of the two numbers you enter; it does not assume changes in demand, order volume or delivery costs.
Use the discount calculator to check the reduced selling price →What cost should you include?
Use the costs that belong to the item or project you are analysing. A product order might include purchase cost, packaging and fulfilment. A service estimate might include subcontractors, materials, travel or a cost allowance for the work involved.
The meaning of the result depends on what you include. If you enter only direct product cost, the output is not automatically your final business profit after every overhead. The calculator does not find missing expenses or decide how shared costs should be allocated.
For a broader period-based calculation, the profit calculator uses revenue and expenses. Keep the scope consistent in either tool.
Understand loss and zero-value results
When selling price is lower than cost, profit and the applicable percentages are negative. That is a loss for the numbers entered. When price equals cost, profit is zero and the sale breaks even on that cost basis.
A zero selling price makes margin undefined because its formula divides by selling price. A zero cost makes markup undefined for the same reason. The calculator shows “Not defined” instead of treating these as a 0% margin or markup.
The profit amount can still be calculated when either input is zero. For example, ₹700 cost and no selling revenue produces a ₹700 loss, even though the margin percentage is undefined.
From margin calculation to quote or invoice
After reviewing the result, use the selling price as the starting customer charge. Your cost and calculated profit remain internal figures. The invoice link carries the selling price into the form rather than adding cost or profit as extra charges.
Check the customer, item description, quantity, due date and any applicable taxes before sharing the invoice. If your selling price already includes tax, account for that separately before using it as a taxable base. This calculator does not add or remove GST.
Margin calculator FAQs
What is a margin calculator?
A margin calculator shows profit margin, markup and profit from cost and selling price.
Who should use a margin calculator?
Freelancers, shops, agencies, contractors and small businesses can use it before quoting or invoicing.
What is the difference between margin and markup?
Margin compares profit to selling price, while markup compares profit to cost.
How do I calculate profit margin?
Subtract cost from selling price to find profit, then divide profit by selling price and multiply by 100. A ₹300 profit on a ₹1,000 selling price gives a 30% margin.
How do I calculate markup?
Divide profit by cost and multiply by 100. With cost of ₹700 and selling price of ₹1,000, the ₹300 profit gives a 42.86% markup.
Is a 30% margin the same as a 30% markup?
No. A 30% markup on ₹700 cost gives a selling price of ₹910. The resulting ₹210 profit is 23.08% of the selling price. A 30% margin on that cost requires a selling price of ₹1,000.
Can the calculator show a negative margin?
Yes. If cost exceeds selling price, the result is a loss. For example, ₹1,200 cost and ₹1,000 selling price gives a ₹200 loss and a negative 20% margin.
Why is margin not defined when selling price is zero?
Margin divides profit by selling price. A zero selling price makes that percentage undefined. The calculator still shows the profit or loss amount.
Why is markup not defined when cost is zero?
Markup divides profit by cost. With zero cost, the percentage is undefined rather than zero. Profit and margin can still be shown when the selling price is positive.
What cost should I enter?
Enter the costs you want to include for the same item, order or project as the selling price. The calculator does not decide which costs belong in your accounts or automatically add missing costs.
Can I use this calculator for a service quote?
Yes. Enter the cost estimate for the service and the proposed selling price for the same scope. Update either amount to compare the resulting profit, margin and markup.
Does this calculate GST or income tax?
No. It uses the two amounts you enter. It does not add GST, calculate income tax or classify a cost. Review taxes separately when preparing an invoice.
Can I copy or download the result?
Yes. Copy result copies a short summary, and Download CSV exports the cost, selling price, profit, margin and markup. Undefined percentages are labelled Not defined.
Can I turn the result into an invoice?
Yes. The invoice link carries the selling price into the invoice maker as the starting item price. Your cost and internal profit are not added as separate customer charges.
Are the calculations saved automatically?
No. The inputs are held on the page while you use it and reset on refresh. Copy or download the result if you want to keep a record.
Is the margin calculator free?
Yes. Calculating margin, markup and profit does not require signup. An account is used separately for saving invoices and managing billing history.
Check margin before your next quote
Compare cost with selling price and see profit, margin and markup together.
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