Margin & Markup Calculator
Find your profit, margin, and markup instantly.
Gross Profit / Loss
Gross Margin
Markup
Margin vs. Markup (The Difference)
Margin and Markup are the two most confused terms in business. Both measure profit, but they look at it from different angles.
What is Markup?
Markup is the profit relative to the Cost Price. It answers: "How much did I add on top of my cost?"
What is Gross Margin?
Gross Margin is the profit relative to the Selling Price. It answers: "Of the final price, what percentage is my profit?"
Example: The ₹100 vs. ₹150 Sale
- Cost Price = ₹100
- Selling Price = ₹150
- Gross Profit = ₹50
Markup = (50 / 100) × 100 = 50%
Margin = (50 / 150) × 100 = 33.33%
Note: Markup is always higher than Margin for the same profit.
FAQs
Q. Which is more important?
Margin is better for understanding overall business health. Markup is better for setting prices.
Q. Does this include overheads?
No. This calculates Gross Margin. To find Net Margin, you must subtract overheads (rent, salaries) from the gross profit.