Free tool
Margin and markup calculator
Price lists are often set with a markup, while profit reports show margin. Work out one item, or paste your price list to find the items that sell under your margin or below cost.
Include freight and loading if you pay them.
Result
- Profit per unit
- ₹350.00
- Markup on cost
- 41.2%
- Margin on price
- 29.2%
Markup is profit as a share of cost. Margin is profit as a share of the selling price. A 25% markup is a 20% margin.
Next step in MatruOS
MatruOS opens a new item with this cost and price, and shows its margin next to every item you sell as purchase costs change.
Track margin on every item in MatruOSKeep this result
Method
How this is worked out
Every figure the tool uses is listed here. Assumptions are fields in the tool, so you can change them to match your business.
- Profit = selling price − cost. Markup = profit ÷ cost. Margin = profit ÷ selling price.
- For a list, each line's last two figures are read as cost and price, and the rest of the line as the item name.
- Use cost before GST when you claim input tax credit, because that GST comes back to you. Include GST in cost when you cannot claim it.
Questions
Questions people ask
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by the selling price. An item bought at ₹800 and sold at ₹1,000 has a 25% markup and a 20% margin.
Should cost include GST?
If you claim input tax credit, use cost before GST, because the GST comes back to you. If you cannot claim it, include it in cost.
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