Profit Margin Calculator

Profit margin is the percentage of revenue that is profit. Formula: Profit Margin = (Profit / Revenue) × 100. It shows how much of each rupee of sales is actual profit after costs.

Margin is calculated based on selling price (Profit / Selling × 100). Markup is calculated based on cost price (Profit / Cost × 100). Markup is always higher than margin for the same profit.

A good profit margin varies by industry. Generally: 10% is average, 20% is good, and 30%+ is excellent. Retail typically has 5-10%, software 25-40%, restaurants 3-5%.

Use formula: Selling Price = Cost / (1 − Margin/100). Example: Cost ₹500, Margin 30% → Selling = 500/(1-0.30) = 500/0.70 = ₹714.29. Use Mode 2 in our calculator.

No, margin cannot exceed 100% (since it's based on selling price). However, markup can easily exceed 100%. For example, 200% markup means selling at 3x cost.

To increase margin: Increase prices (carefully), reduce costs (negotiate suppliers, bulk buy), improve efficiency, focus on high-margin products, bundle products, and reduce overhead expenses.