Business Tools · Reviewed 7 October 2026

Profit Margin and Markup Calculator

Separate profit margin on sales from markup on cost.

Free to useNo signupRuns in your browser
Your inputs
Your result

Estimate based on your inputs and stated assumptions. It is not a guarantee of returns, rates, eligibility or tax outcome.

Methodology by Finpockett · See how calculators are built and checked

Worked example

A starting scenario, with the assumptions shown

These are the calculator’s starting inputs, used to illustrate the method. They are not a recommended plan. Changing the inputs above updates the interactive result; this example remains a fixed reference.

View the example inputs
Revenue for the period₹5,00,000
Cost for the same period₹3,50,000
ResultIllustrative value
Profit margin30.00%
Profit₹1,50,000
Markup on cost42.86%

Margin = profit/revenue; markup = profit/cost. Enter comparable tax-exclusive amounts for the same period.

Understand the calculation

What is a Profit Margin and Markup Calculator?

Separate profit margin on sales from markup on cost. Use comparable tax-exclusive revenue/cost figures; negative margins show losses.

Use the inputs that describe your actual situation. Change one assumption at a time, compare the results, and read the scope note alongside the number. The tool calculates a stated scenario; it does not decide whether an investment, policy or tax treatment is suitable for you.

Method and assumptions

Margin = profit / revenue; markup = profit / cost

Use comparable tax-exclusive revenue/cost figures; negative margins show losses.

Read the result with these boundaries

Use comparable tax-exclusive revenue/cost figures; negative margins show losses.

Check the inputs before acting

Confirm actual costs, dates, eligible amounts and product terms from your records. Compare a conservative case and an adverse case rather than relying on the default inputs. A result can change substantially when return, tax, contribution or cost assumptions change.

Frequently asked questions

What does this tool calculate?

Separate profit margin on sales from markup on cost. Margin = profit / revenue; markup = profit / cost

What is outside its scope?

Use comparable tax-exclusive revenue/cost figures; negative margins show losses.

Are the default inputs a recommendation?

No. Defaults are worked scenarios. Use your own verified amounts and test more than one assumption.

For educational and illustrative use only. Verify current rates, rules and eligibility with the relevant official source before making a financial decision.