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BUSINESS & GST

Pricing & Margin Calculator

Work out selling price from cost and margin, or margin from cost and price.

About this tool

Margin is profit expressed as a percentage of the selling price — not the cost, which is the detail that trips people up when they use "margin" and "markup" interchangeably. A 30% margin means 30% of what the customer pays is profit; the other 70% covers cost.

This calculator works both directions. Given a cost and a target margin, it tells you what to charge. Given a cost and a price you're already charging (or considering), it tells you the actual margin you're getting — useful for checking whether a price you picked intuitively actually hits your target profitability.

The formula: selling price = cost ÷ (1 − margin%). This is different from a markup calculation (cost × (1 + markup%)), which is why the same percentage produces a different price depending on which one you use — see the Discount & Markup Calculator if you specifically need markup-on-cost instead.

Frequently asked questions

Why is margin different from markup for the same percentage?

Margin is profit as a percentage of selling price; markup is profit as a percentage of cost. A 50% markup on a ₹100 cost gives a ₹150 price, which is only a 33% margin — they’re calculated against different bases.

What margin should I target?

This varies enormously by industry — retail, services, and manufacturing all have different typical margins. This tool computes the math; the target percentage is a business decision only you can make.

Does this include GST or other taxes in the price?

No, this works on a pre-tax cost and price. Add GST separately using the GST Invoice Generator when billing a customer.

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