What this calculation tells you
Margin and markup describe the same profit using different bases. Margin uses the selling price or revenue; markup uses the cost. Confusing the two can produce a very different selling price from the one you intended.
Use matching units: compare the cost of one item with the price of one item, or total cost with total revenue for the same set of sales. The result is only as complete as the costs you include; it is not automatically net business profit.
The method, explained
Gross profit = revenue − cost Margin (%) = profit ÷ revenue × 100 Markup (%) = profit ÷ cost × 100
The inputs use the units printed beside each field. Values shown in result cards are rounded for readability; the calculator keeps more precision while applying the formula.
A worked example
Cost: ₹1,000.00 · Revenue / selling price: ₹1,400.00.
Gross profit: ₹400.00
This example uses the inputs above. Your result changes when you change them.
Assumptions & limitations
- Both cost and revenue must be positive.
- A negative result is a loss and the percentages remain signed.
- Tax, rent, payroll, fees and other overhead are excluded unless you include them in the cost input.
Questions about this tool
What is the margin on ₹100 cost and ₹150 revenue?
Profit is ₹50. Margin is 33.33% of revenue, while markup is 50% of cost.
Does gross profit equal net profit?
Not necessarily. Net profit requires all relevant expenses and accounting adjustments, not just a product cost.
Published by Sanu Tech Innovation LLP · Model notes updated 30 September 2026. Read our calculation standards or report a reproducible issue.