Profit margin calculator
Enter your product cost, extra costs and selling price to see profit, margin and markup instantly – with or without GST. Or set a target margin and get the exact price to charge.
- Runs in your browser – private
- Instant results
- Free forever, no sign-up
How to use the Profit Margin Calculator
- 1
Enter the product cost and other per-unit costs like packaging, shipping and ads.
- 2
Type your selling price, or switch to target margin mode and enter the margin you want.
- 3
Read your profit, margin %, markup % and the GST portion – it updates as you type.
What is profit margin and why sellers should track it
Profit margin tells you how much of every rupee you sell is actually yours to keep after costs. A product that sells for ₹1,000 with ₹700 of costs has a 30% margin. Tracking margin – not just revenue – is what separates growing online stores from busy stores that run out of cash.
This margin calculator is built for e-commerce sellers on Amazon, Flipkart, Meesho, Shopify and WooCommerce, D2C brands, resellers and wholesalers. It handles GST-inclusive prices, so your margin is calculated on the net amount you really earn, not on tax you pass to the government.
Profit margin formula (and markup formula)
The calculator uses the standard formulas accountants use:
Profit margin % = Profit ÷ Net selling price × 100
Markup % = Profit ÷ Total cost × 100
Price for target margin = Total cost ÷ (1 − margin %)
If your selling price includes GST, the tool first removes GST (price ÷ (1 + GST rate)) to get the net selling price. For example, ₹1,180 including 18% GST is ₹1,000 net.
Margin vs markup: what is the difference?
Margin and markup use the same profit number but divide it by different bases, which is why they are often confused:
- Margin compares profit to the selling price. It can never be 100% or more.
- Markup compares profit to the cost. A 100% markup means you doubled the cost.
A 50% markup equals only a 33.3% margin. Pricing with markup when you meant margin is one of the most common reasons sellers underprice. Use the target margin mode to get the right selling price every time.
What is a good profit margin for e-commerce?
It depends on your category and business model, but as a rough guide many online sellers aim for a gross margin of 30–50% before advertising, so there is room for marketplace fees, returns and ad spend. Low-ticket items usually need higher margins; high-ticket electronics often run on thinner margins with higher volume.
For a complete per-order view including marketplace commission, shipping fees, TCS and TDS, use our Amazon & Flipkart fee calculator, and check ad profitability with the ROAS calculator.
Frequently asked questions
How do I calculate profit margin?
Subtract your total cost from the net selling price to get profit, then divide profit by the net selling price and multiply by 100. Example: (₹1,000 − ₹700) ÷ ₹1,000 × 100 = 30% margin.
What is the formula for selling price from a margin?
Selling price = total cost ÷ (1 − desired margin). For a ₹700 cost and a 30% margin: ₹700 ÷ 0.70 = ₹1,000 before GST. Add GST on top if your price must include it.
Should profit margin be calculated with or without GST?
Without GST. GST collected from customers belongs to the government, so margin should be based on the net price excluding GST. Tick “Selling price includes GST” and the calculator removes it for you.
Is a 50% markup the same as a 50% margin?
No. A 50% markup on a ₹100 cost gives a ₹150 price and a 33.3% margin. To get a 50% margin you need a 100% markup (₹200 price).
What costs should I include?
Include everything you spend per unit to sell it: product or manufacturing cost, packaging, inbound freight, shipping, marketplace or payment gateway fees, and your average ad cost per order.
Is this profit margin calculator free?
Yes. It is 100% free, needs no sign-up and runs entirely in your browser.