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Business Tools
Profit Margin & Markup Calculator
Calculate gross profit margin, markup percentage, and reverse engineer pricing. Supports target margin pricing, multiple scenarios, and clear explanations for business owners and freelancers.
Calculate from Cost & Selling Price
Gross Profit
₹400
Margin %
33.33%
Markup %
50.00%
Profit per ₹100 sale
₹33
Price from Desired Margin %
Required Selling Price
₹1,231
Price from Markup %
Required Selling Price
₹1,200
Equivalent margin ≈ 33.33%
Remember: A 50% markup is only ~33% margin. Always work in margin % when thinking about profit on revenue.
Margin vs Markup — The Most Common Pricing Mistake
Many business owners accidentally underprice because they confuse margin and markup. A "50% markup" sounds good but actually delivers only about 33% gross margin. This calculator removes the guesswork by letting you work in both directions and instantly see the real profit percentage on revenue.
How to Use Effectively
- Start with your actual cost and current price to see your true margin.
- Use the "Price from Desired Margin" section when you have a target profitability (e.g. I want 40% margin).
- Use Markup mode when suppliers quote "keystone pricing" or you think in "double my cost".
- Experiment — small changes in margin requirements have big effects on required price.