Formula
Profit = Revenue − Cost. Margin = Profit ÷ Revenue × 100. Markup = Profit ÷ Cost × 100.
Business tools
Profit Margin Calculator
Calculate gross profit, profit margin, and markup from your sales revenue and direct costs.
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Your inputs
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Estimated results
How this calculator works
Profit Margin
Profit margin shows how much of each sales rupee remains after direct costs. Markup compares the same profit with the cost instead of revenue.
Simple example
Revenue of Rs. 500,000 and costs of Rs. 325,000 produce Rs. 175,000 profit, a 35% margin, and about 53.85% markup.
FAQ
Frequently asked questions
What is a good profit margin?+
It depends on your industry, business model, and operating costs. Compare consistently with your own past performance and relevant industry benchmarks.
Are margin and markup the same?+
No. Margin measures profit against revenue, while markup measures profit against cost.
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Finance Desk LK can help keep your accounts accurate, organised, and ready for better decisions.