Practical calculator
Profit Margin & Markup Calculator
Compare the selling price, product cost and extra cost per unit. Find gross margin, markup and contribution separately, or solve a price from a target margin.
বাংলায় ব্যবহার নির্দেশনা
পণ্যের খরচ ও বিক্রয়মূল্য দিন। Margin বিক্রয়মূল্যের শতাংশ; markup পণ্যের খরচের শতাংশ। অতিরিক্ত খরচ দিলে contribution আলাদা দেখাবে।
Calculation result
Formula and calculation method
Gross profit = sale price − product cost. Gross margin = gross profit ÷ sale price × 100. Markup = gross profit ÷ product cost × 100. Target price = (product cost + entered extra costs) ÷ (1 − target contribution margin/100). Discount is applied afterward.
Worked example
A product costing ₹350 and selling for ₹500 gives ₹150 gross profit, 30% gross margin and 42.8571% markup. With no extra cost, a 40% target margin requires ₹583.33 before discount. Adding ₹50 extra cost leaves ₹100 contribution at a ₹500 sale price.
Assumptions and limitations
Use tax-exclusive amounts on a consistent basis. Enter only costs you intend to include. Unentered overheads, tax, returns and finance charges are excluded; contribution is not business net profit. Zero sale price makes margin undefined, and zero cost makes markup undefined.
Your entries are used in your browser for this calculation. Entered values are not included in calculator analytics. CSV files are downloaded to your device; no account is required.
Frequently asked questions
Are margin and markup the same?
No. Margin divides profit by selling price; markup divides it by product cost.
Does a target price include the discount?
The target margin sets a price before the entered discount. The result shows how the discount changes the actual contribution.
Sources and editorial check
Markup and margin definitions. Examples and method checked 15 October 2026. No independent professional review is claimed.