Margin Calculator

What Is a Margin Calculator?

A margin calculator computes the profit margin, markup, revenue, cost, or profit for any product or service — given any two of these values. It's an essential tool for business owners, e-commerce sellers, freelancers, and retailers who need to price products profitably and understand the relationship between cost and selling price.

Margin vs. Markup — Understanding the Difference

Profit Margin is profit as a percentage of selling price: Margin = (Price - Cost) / Price × 100. A 40% margin means 40% of what you charge is profit.

Markup is profit as a percentage of cost: Markup = (Price - Cost) / Cost × 100. A 67% markup on a cost of ₹600 produces a selling price of ₹1,000 — which is a 40% margin. Confusing the two leads to systematic under-pricing.

Who Uses a Margin Calculator?

E-Commerce Sellers

Amazon and Flipkart sellers need to account for product cost, platform fees (8–20%), shipping, returns, and advertising before arriving at a profitable listing price. The margin calculator ensures each SKU is actually profitable.

Freelancers & Consultants

Service providers calculating hourly rates need to account for overhead costs, self-employment tax, and desired net income to arrive at a billable rate that's both competitive and sustainable.

Related Tools

Combine with the Discount Calculator to check post-discount margins and the Sales Tax Calculator for GST-inclusive pricing.