Profit margin calculator
Enter your cost price and either your selling price, the margin you want or the markup you want. See your profit, margin and markup, and set wholesale, reseller and retail prices from one cost.
Questions
What is the difference between margin and markup?
Margin is your profit as a share of the selling price. Markup is your profit as a share of your cost price. Buy at Rs 1,000 and sell at Rs 2,000: the profit is Rs 1,000, which is a 100% markup but a 50% margin.
Which one should I use to set my price?
Markup is quicker, because you add a percentage to your cost. Margin is what you watch when you count what you keep from sales, and what ads and discounts eat into. Pick the one you think in, and check the other here.
Why can a margin never reach 100%?
Margin is profit divided by price, and your cost is part of the price unless it is zero. A 100% margin would mean the product cost you nothing, so the calculator shows a dash.
What markups should I use for wholesale, reseller and retail?
The defaults of 20%, 50% and 100% are examples, not rules. Distributors often add around 20%, and doubling the cost, a 100% markup, is a common starting point for retail. Your category, your competitors and your costs decide the real numbers, so change them.
Why do prices end in 99 or 50?
Customers read Rs 1,499 as closer to Rs 1,400 than to Rs 1,500, so many sellers end prices in 99. Others like round figures that are easy to say on WhatsApp. Choose a price style and the ladder rounds each price, and the margin shown is for the rounded price.
Does this count courier charges and returns?
No. Margin here is only price against cost price. For cash on delivery, add courier, packaging, ads and returned parcels with the COD profit calculator on this site to see what you really keep.