Check the actual margin on a product already priced at ₹1200 with a ₹800 cost.
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.
Worked example: a product costs ₹500 to make, and you want a 40% margin. Selling price = 500 ÷ (1 − 0.40) = 500 ÷ 0.60 = ₹833.33, giving a profit of ₹333.33 per unit. A common mistake is computing this as cost × 1.40 = ₹700 instead — that's a markup calculation, and it actually gives a smaller profit percentage than the margin you were aiming for, not the same one.
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.
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.
No, this works on a pre-tax cost and price. Add GST separately using the GST Invoice Generator when billing a customer.