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.

Profit Margin Calculator

Enter Your Prices

Enter what the product costs you and what you charge your customer.

Your Cost

Enter your total cost for the product or service. Example: ₹1,000

Customer Pays

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.

Simple & Fast

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.

1
Step 01

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.

2
Step 02

Enter Your Selling Price

Enter the price you charge your customer for the product or service.

3
Step 03

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

Cost Price₹100
Selling Price₹150

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.