Profit margin & markup

Understand the difference between margin and markup.

Your numbers

₹
Sixty thousand rupees
₹
One lakh rupees

Your inputs stay in your browser.

Gross profit margin

40%
Revenue / sales₹1,00,000
Entered costs₹60,000
Profit / loss₹40,000
Markup on entered costs66.67%

For illustration only. Read the assumptions below for the full picture.

Estimates, not promises. Explore different scenarios.

Understand your result.

Calculate gross, operating or net profit margin from comparable revenue and cost figures. Markup is shown separately because it uses cost, rather than revenue, as the denominator.

A 40% margin and a 40% markup are not the same. Choose the cost scope that matches the type of profit you want to measure.

A worked example.

Using this calculator’s default inputs, gross profit margin is 40%. This is an illustration of the stated formula, not a forecast.

See the example inputs
Cost / expenses₹60,000
Sales / revenue₹1,00,000
Type of costs enteredProduct cost — gross margin
Try this example

A common mistake to avoid

Including output GST in sales while excluding recoverable GST from costs.

Questions you might have.

Can the margin be negative?

Yes. Costs above revenue produce a loss and a negative margin.

Does this calculate stock-trading margin?

No. It describes business profitability, not borrowing limits, leverage or exchange margin requirements.

Prepared by INDwise · Calculation checks: 29 October 2026 · How we check the maths · Report a correction

How we calculate it

Profit = revenue − entered costs. Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100 when cost is positive.

Assumptions & things to know

Enter comparable amounts for the same product or accounting period. Exclude recoverable GST from cost and output GST from revenue. Operating costs should include cost of sales; net costs should include all relevant expenses. This is business profit margin, not leveraged trading margin.

Your privacy & sharing

Your financial inputs are used only within this page. Saved calculators use this browser’s local storage. Sharing creates a link with the entered values, so anyone with that link can see those values. A downloaded summary stays on your device.