Profit Margin Calculator
Calculate gross profit margin percentage and gross profit dollars from cost and selling price.
Cost & Price
₹
₹
Profit Analysis
Gross Margin40.0%
Gross Margin40.00%
Markup Percentage66.67%
Unit Profit₹400.00
Calculate gross profit margin percentage and gross profit dollars from cost and selling price.
Calculate your profit margin from selling price and cost with this free online tool.
Profit margin is the percentage of the selling price that is profit. It shows how much of every rupee earned is kept as profit after paying for the cost of goods or services.
A 30% profit margin means that 30 rupees out of every 100 rupees of revenue is profit, and the remaining 70 rupees covers costs.
Gross profit margin equals (selling price minus cost price) divided by selling price, multiplied by 100.
For a product costing 700 rupees and selling for 1000 rupees: margin equals (1000 minus 700) divided by 1000, times 100, equals 30%.
Profit margin is based on the selling price. Markup is based on the cost price. A 30% margin is not the same as a 30% markup.
If you sell at 30% margin, your markup is approximately 43%. If you mark up by 30%, your margin is approximately 23%. The margin vs markup calculator on Tez Invoice shows both figures side by side.
Profit margin tells you how efficiently your business converts revenue into profit. Low margins mean costs are eating most of the revenue. High margins mean you have pricing power.
Tracking margin by product or service helps you focus on your most profitable offerings and eliminate or reprice low-margin items.
Good margins vary by industry. Grocery retail margins can be as low as 3-5%. Software and consulting often achieve 50-70% margins. Manufacturing typically aims for 20-30% gross margin.
Compare your margin to industry benchmarks to understand where your pricing and cost control stands.
Tez Invoice is our free online invoice generator. No sign up. No watermark. Download clean PDF or JPEG invoices in seconds, right from your browser.
Common questions about Profit Margin Calculator: Find Your Gross Margin Percentage Online on Tez Invoice.
Profit margin is the percentage of selling price that becomes profit. It equals (selling price minus cost) divided by selling price, times 100.
Gross margin equals (selling price minus cost) divided by selling price, times 100.
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost price.
Yes. Free with no sign up.
It depends on the industry. Retail: 3-20%. Services: 30-70%. Software: 50-90%.
Use the margin vs markup calculator on Tez Invoice to compare both figures at once.
Yes. Fully responsive.
No. In-browser only.
Knowing your margin helps you set minimum acceptable prices, negotiate discounts with confidence, and identify your most profitable products.
Use the free Invoice Generator on Tez Invoice.