Profit Margin Calculator Calculate Your Profit Margin
Calculate your profit, profit margin, or loss instantly. Enter your cost price and selling price to see how much you earn from each sale.
Enter Your Prices
Enter what the product costs you and what you charge your customer.
Enter your total cost for the product or service. Example: ₹1,000
Enter the price you charge your customer. Example: ₹1,500
Profit Margin Formula
Profit Margin = (Selling Price − Cost Price) ÷ Selling Price × 100
Profit = Selling Price − Cost Price
Profit Margin Result
Enter your prices
Your result will appear here
Enter a valid cost price and selling price to instantly calculate your profit margin.
Profit Margin Calculator: This calculator calculates profit or loss and profit margin using your cost price and selling price. Profit margin is calculated as profit divided by selling price, multiplied by 100. It does not automatically include taxes, GST, shipping charges, platform fees, operating expenses, or other business costs unless those costs are included in your entered cost price.
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How to Calculate Profit Margin
Calculate your profit margin using your cost price and selling price. See your profit amount and profit margin percentage instantly with our free calculator.
Enter Your Cost Price
Enter how much you paid to make or purchase the product. Include the relevant costs used to determine your product cost.
Enter Your Selling Price
Enter the price you charge your customer for the product or service.
See Your Profit Margin
Get your profit amount and profit margin percentage instantly so you can understand how profitable your sale is.
Profit Margin Calculation Example
Here's a simple example showing how profit margin is calculated.
Example
Result
Profit
₹50
Profit Margin
33.33%
You earn ₹50 profit on a ₹150 sale, which means 33.33% of the selling price is profit.
Profit Margin Formula
Use this formula to calculate the percentage of your selling price that represents profit.
Profit Margin
(Selling Price − Cost Price) ÷ Selling Price × 100
Selling Price
₹150
Cost Price
₹100
Profit Margin
33.33%
What Does Profit Margin Mean?
Profit margin shows how much of your selling price remains as profit after covering the product cost.
Positive Margin
Your selling price is higher than your cost, so the sale generates a profit.
Zero Margin
Your selling price equals your cost, so there is no profit from the sale.
Negative Margin
Your selling price is lower than your cost, resulting in a loss.
Who Can Use a Profit Margin Calculator?
Profit margin calculations are useful for many types of businesses and sellers.
Ecommerce Sellers
Check the profitability of products before selling them online.
Retail Businesses
Understand how much profit each product generates.
Small Businesses
Evaluate product pricing and business profitability.
Freelancers
Compare service costs with the prices charged to clients.
What is a Profit Margin Calculator?
A profit margin calculator is a simple online tool that helps you calculate how much profit you earn from a sale as a percentage of the selling price. It uses your cost price and selling price to calculate your profit and profit margin instantly.
For example, if a product costs ₹100 and you sell it for ₹150, your profit is ₹50. Your profit margin is 33.33% because ₹50 is 33.33% of the ₹150 selling price.
Profit Margin Formula
Profit Margin = (Selling Price − Cost Price) ÷ Selling Price × 100
What can you calculate?
Enter your cost and selling price to understand the profitability of your product or service.
Calculate Your Profit
Find the amount you earn after subtracting your cost from the selling price.
Calculate Profit Margin
Find what percentage of your selling price is profit.
Evaluate Product Pricing
Check whether your selling price leaves enough profit after covering your product cost.
Understand Business Profitability
Use your profit margin to better understand how profitable your products or services are.
Frequently Asked Questions About Profit Margin
Find answers to common questions about profit margin, profit calculations, selling prices, cost prices, and using a profit margin calculator.
What is a profit margin?+
Profit margin is the percentage of your selling price that remains as profit after subtracting the cost of the product or service. For example, if a product costs ₹100 and sells for ₹150, the profit is ₹50 and the profit margin is 33.33%.
What is a profit margin calculator?+
A profit margin calculator is an online tool that calculates your profit and profit margin based on your cost price and selling price. It helps you quickly understand how much profit you make from each sale without doing the calculation manually.
How do I calculate profit margin?+
To calculate profit margin, first subtract the cost price from the selling price to find the profit. Then divide the profit by the selling price and multiply by 100. The formula is: Profit Margin = ((Selling Price − Cost Price) ÷ Selling Price) × 100.
What is the profit margin formula?+
The profit margin formula is: Profit Margin = ((Selling Price − Cost Price) ÷ Selling Price) × 100. For example, if the cost is ₹100 and the selling price is ₹150, the profit is ₹50 and the profit margin is (₹50 ÷ ₹150) × 100 = 33.33%.
What is the difference between profit and profit margin?+
Profit is the actual amount of money you earn after subtracting your cost from your selling price. Profit margin is that profit expressed as a percentage of the selling price. For example, ₹50 is the profit, while 33.33% is the profit margin when a ₹100 product is sold for ₹150.
What is the difference between profit margin and markup?+
Profit margin and markup use different reference values. Profit margin calculates profit as a percentage of the selling price, while markup calculates profit as a percentage of the cost price. This calculator focuses on profit margin.
What is a good profit margin?+
There is no single profit margin that is considered good for every business. A reasonable margin depends on the industry, product type, operating costs, competition, and business model. Compare your margin with similar businesses and make sure it supports your overall costs and goals.
Can profit margin be negative?+
Yes. Profit margin can be negative when the selling price is lower than the cost price. For example, if a product costs ₹100 and is sold for ₹80, the profit is -₹20 and the profit margin is -25%.
Can profit margin be 0%?+
Yes. A 0% profit margin means the selling price is equal to the cost price. You are neither making a profit nor a loss on the sale.
Can profit margin be greater than 100%?+
For a standard profit margin based on selling price, the margin normally cannot exceed 100% when the cost price is zero or positive. If your selling price and cost price are both positive, the profit margin will be less than 100%.
Can I calculate profit margin for a product?+
Yes. Enter the product's cost price and selling price into the calculator. It will calculate the profit amount and profit margin percentage. This can help ecommerce sellers, retailers, and other businesses evaluate product profitability.
Can I use this calculator for services?+
Yes. You can use the calculator for services as well as physical products. Use the total cost required to provide the service as the cost price and the amount charged to the customer as the selling price.
What costs should I include when calculating profit margin?+
For a more accurate profit margin, include the costs that are relevant to the calculation. Depending on your business, these may include product or production costs, packaging, shipping, payment processing fees, and other direct costs. If you want to calculate a specific type of margin, make sure you use the appropriate costs consistently.
Is this Profit Margin Calculator free to use?+
Yes. Kaaf11's Profit Margin Calculator is free to use online. No account, registration, or software installation is required.
Is my calculation data stored on your servers?+
The calculation can be performed directly in your browser, so your numbers do not need to be sent to a server simply to calculate the result. If the calculator is implemented entirely client-side, the values you enter remain in your browser during the calculation.