Auditing SKU Unit Economics After Marketplace Fees
Input your landed product cost (manufacturing + packaging + shipping) against net selling price to verify whether a SKU achieves a healthy 35%+ gross margin.
Profit Margin Calculator
Determine your exact gross profit in rupees (₹), net profit margin percentage, and cost markup percentage in real time. Built for retail shopkeepers, D2C e-commerce founders, wholesalers, and service agencies who want to price products profitably without confusing margin with markup.
₹
Your direct manufacturing or purchase cost₹
Price charged to the buyer before taxesProfit & Loss MetricsProfitable
Unit Profit:₹200.00
Profit Margin20.00%of Selling Price
Markup25.00%over Cost Price
Net Profit per Unit₹200.00
The Difference Between Margin & Markup
Profit Margin
Measures how much profit you keep from every rupee of revenue.
Margin % = (Profit ÷ Selling Price) × 100
Example: You sell for ₹100 with ₹20 profit. Your margin is 20%.
Markup Percentage
Measures how much you add to your cost price to arrive at selling price.
Markup % = (Profit ÷ Cost Price) × 100
Example: Your cost was ₹80 and you sell for ₹100 (₹20 profit). Your markup is 25%.
How to Use the Profit Margin Calculator
- 1
Enter your Cost Price (COGS — what you paid to buy or manufacture one unit, excluding recoverable GST).
- 2
Enter your Selling Price (the net revenue you collect from your customer per unit).
- 3
Optionally enter a batch Quantity to see total batch revenue, total cost, and total profit.
- 4
Compare Gross Profit (₹), Profit Margin %, and Markup % side-by-side.
Practical Use Cases
Comparing Distributor Schemes & Trade Margins
Quickly check whether a distributor's 25% markup scheme actually yields the 20% retail margin needed to cover store rent and electricity.
Pricing White-Label Client Projects
Calculate agency gross margin when outsourcing development or production work at a fixed subcontractor cost.
Profit Margin Calculator Features
Margin vs. Markup Comparison
See both metrics side-by-side to avoid confusing pricing markups with profit margins.
Loss Detection
Instantly alerts you with clear negative indicators if your selling price drops below cost.
Per-Unit and Total Batch Modes
Calculates unit economics and scales to entire production or purchase orders.
100% Private & In-Browser
Calculations and document previews run entirely in your web browser. No financial data is ever stored on our servers.
Free for Indian Businesses
Created specifically for freelancers, consultants, shop owners, traders and MSMEs across India with zero subscription costs.
Mobile & Print Ready
Optimized for one-hand mobile input, instant copy actions, and clean A4 printable layouts.
Technical Specifications & Best Practices
- ✓Profit Margin % = `(Selling Price − Cost Price) ÷ Selling Price × 100` (always a percentage of revenue).
- ✓Markup % = `(Selling Price − Cost Price) ÷ Cost Price × 100` (always a percentage of cost).
- ✓For GST-registered businesses, always enter pre-tax (GST-exclusive) Cost and Selling Price so pass-through tax does not distort your true margin.
- ✓Gross margin does not deduct fixed company overheads like office rent, marketing ads, or corporate income tax.