Profit margin calculator
Free · No signup · Updated November 2026 by the DrapifyApp team
How do I calculate profit margin and selling price?
Profit margin = (selling price − cost) ÷ selling price × 100. Markup = (selling price − cost) ÷ cost × 100. An item costing ₹300 and selling for ₹500 earns ₹200: a 40% margin and a 66.7% markup. To hit a target margin, price = cost ÷ (1 − margin ÷ 100).
- Profit
- ₹200
- Margin
- 40.0%
- Markup
- 66.7%
Price for a target margin
- Sell at
- ₹500
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- Enter cost and selling price to see profit, margin and markup.
- Or enter a target margin to get the selling price you need.
Margin is not markup
A 50% markup is only a 33.3% margin. Mixing them up is a common reason sellers price too low. Marketplaces quote fees as a share of the selling price, so margin is the number to compare against them.
Include every cost
For online selling, “cost” should include packaging and the fees each channel takes. The platform calculators add commission, shipping and returns for you.
Questions
- What is a good profit margin for clothing?
- It varies widely by channel, price point and return rate. Work out your break-even price first, then decide how much margin each channel needs.
- How do I calculate selling price from margin?
- Divide cost by (1 − margin). For a 40% margin on a ₹300 cost, 300 ÷ 0.6 = ₹500.
- How do I convert markup to margin?
- Margin = markup ÷ (1 + markup). A 100% markup equals a 50% margin.
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