Profit Margin Calculator
Calculate Gross Profit Margin percentage.
Input Values
Adjust parameters below
110,000
₹
110,000
₹
RESULT
Gross Margin
37.50%
PERCENT
Profit
$300How It Works
Guide and Formula
Profit Margin Calculator
Margin is different from Markup. Margin is profit as a percentage of the Selling Price.
Gross Margin Formula:
\text{Margin} \% = \frac{\text{Selling Price} - \text{Cost Price}}{\text{Selling Price}} \times 100
Key Insight
This shows how much of every rupee from sales is actual profit. A higher margin means more efficient pricing and cost control.
Margin vs Markup
| Markup | Margin |
|--------|--------|
| 25% | 20% |
| 50% | 33.3% |
| 100% | 50% |
?FAQs
What is a good profit margin?
A good margin varies by industry. Retail: 20-30%, Services: 30-50%, Restaurants: 5-10%. Compare with industry benchmarks.
What's the difference between margin and markup?
Margin = Profit ÷ Revenue (Selling Price). Markup = Profit ÷ Cost. Markup is always higher than margin for the same profit.
How can I improve my margin?
Increase prices, reduce COGS (Cost of Goods Sold), negotiate better supplier terms, or reduce waste.