CalcPenguin

Profit Margin Calculator

Work out profit, margin and markup from your cost and selling price, or find the price to charge to hit a target margin.

Your numbers are saved in this browser.
PKR
PKR

Profit margin

20%

Profit per sale
Rs 200
Selling price
Rs 1,000
Markup on cost
25%

Selling at Rs 1,000.00 with a cost of Rs 800.00 makes Rs 200.00 profit: a 20% margin and a 25% markup.

How it's worked out

  1. ProfitRs 1,000.00 − Rs 800.00Rs 200.00
  2. Margin (profit as a share of price)Rs 200.00 ÷ Rs 1,000.00 × 10020%
  3. Markup (profit as a share of cost)Rs 200.00 ÷ Rs 800.00 × 10025%
  • Margin and markup are often confused. A 25% markup gives a 20% margin, because margin is measured on the selling price.

The formulas

Profit = price − cost
Margin = profit ÷ price × 100
Markup = profit ÷ cost × 100

Worked example

Buying stock at Rs 800 and selling it at Rs 1,000 makes Rs 200 profit per sale: a 20% margin and a 25% markup.

Questions people ask

What is the difference between margin and markup?

Margin is profit as a share of the selling price; markup is profit as a share of the cost. Cost 800 and price 1,000 is a 20% margin but a 25% markup.

How do I price for a target margin?

Divide the cost by (1 − target margin). For a 25% margin on a cost of 750, charge 750 ÷ 0.75 = 1,000.

What is a good profit margin?

It depends on the trade. Grocery shops often work on single-digit margins, while software and services can run far higher. Compare with others in your business.

Formula and rules last checked 25 October 2026Written and tested by the CalcPenguin teamReport a problem