// PROFIT MARGIN CALCULATOR
Profit Margin Calculator
Calculate margin and markup from revenue and cost. Use COGS for gross margin or total cost for net margin.
// INPUTS
₹
₹
Use COGS for gross margin, total costs for net margin.
// OUTPUT
PROFIT MARGIN
35.00%
PROFIT₹3,50,000
MARKUP ON COST53.85%
// FORMULA
// FORMULA
Margin = (Revenue − Cost) / Revenue Markup = (Revenue − Cost) / Cost
Margin is the percentage of revenue kept; markup is the percentage added on top of cost.
// EXAMPLE
// WORKED OUT
Revenue ₹10,00,000; cost ₹6,50,000: Profit = ₹3,50,000 Margin = 35.00% Markup ≈ 53.85%
// WHAT THIS MEANS
Margin and markup are easily confused but very different. A 50% markup is only a 33% margin, because the denominator is different. When pricing, pick the perspective that fits the conversation: margin for finance, markup for retail buy-side discussions.
// FAQ
Why are margin and markup different?+−
Margin uses revenue as the base, markup uses cost. The same profit yields a smaller margin number than a markup number.
Which one do investors care about?+−
Margin, usually — especially gross, operating, and net margin trends over time.