Free tool · Profit margin calculator
Profit Margin Calculator
Work out profit, margin and markup from your cost and selling price, or find the price that gives the margin you want. Built for shops in Pakistan: type rupee amounts, add a quantity for total profit, and see why a 25% markup is only a 20% margin.
Free, no sign-upRuns in your browserUpdated
What you paid, including freight.
Items sold, to see the total profit.
Profit per item
Rs 0
- Cost
- —
- Selling price
- —
- Profit
- —
- Margin (profit ÷ price)
- —
- Markup (profit ÷ cost)
- —
Margin and markup are not the same: a 25% markup on cost gives a 20% margin on the price.
Short answer
Work out profit, margin and markup from your cost and selling price, or find the price that gives the margin you want. Built for shops in Pakistan: type rupee amounts, add a quantity for total profit, and see why a 25% markup is only a 20% margin.
Roman Urdu mein
Cost aur bechne ki price likhein: Profit, margin aur markup foran nazar aayega. Jitna margin chahiye wo likhein to sahi price bhi mil jayegi.
Key facts
- Margin
- Profit ÷ selling price × 100
- Markup
- Profit ÷ cost × 100
- Price for a target margin
- Cost ÷ (1 − margin ÷ 100)
- Works offline?
- It runs in your browser; nothing is sent or saved
How to use the profit margin calculator
Step 1: Choose what you know
Pick I know my price if you already sell the item, or Target margin / Target markup if you are setting a new price.
Step 2: Enter the cost per item
Use the full landed cost: purchase price plus freight, loading and any packing. A cost that leaves out transport makes every margin look better than it is.
Step 3: Enter the price or the % you want
The result panel updates as you type, with profit, margin and markup side by side.
Step 4: Add a quantity (optional)
Type how many you sell in a day or a month to see the total profit on that quantity.
How it's calculated
Profit per item is selling price − cost. The same profit is then read two ways:
- Margin divides profit by the selling price. It tells you how much of every rupee in the galla is yours.
- Markup divides profit by the cost. It tells you how much you added on top of what you paid.
To set a price from a margin, divide the cost by (1 − margin). To set it from a markup, multiply the cost by (1 + markup). Because the divisor is different, the two numbers are never equal: a markup is always the bigger percentage.
Worked example
You buy a bottle of cooking oil for 300 rupees including transport and sell it for 375 rupees.
- Profit = 375 − 300 = 75 rupees
- Margin = 75 ÷ 375 = 20%
- Markup = 75 ÷ 300 = 25%
Now a new item costs 480 rupees and you want a 20% margin. Price = 480 ÷ (1 − 0.20) = 480 ÷ 0.8 = 600 rupees. If you had added 20% markup instead, the price would be 576 rupees and the margin only 16.7%. Selling 50 of them a week, that gap is 1,200 rupees of profit every week.
When you run the counter on Nafaa, cost and sale price are saved on each product, and the profit report shows margin by product and category from real bills, so you can check the numbers this calculator gives you against what actually sold.
Common questions
What is a good profit margin for a kiryana or general store?
It depends on the item. Fast-moving essentials such as flour, sugar and oil usually carry thin margins because every shop sells them, while snacks, cosmetics and loose items carry more. Instead of one target for the whole shop, look at margin by category and make sure the slow, space-taking items earn enough to justify their shelf. Use this calculator per item, then compare categories in your profit report.
Should I use margin or markup to set prices?
Either works if you are consistent, but margin is safer because it is measured against the price customers pay, the same base as your sales and expenses. Many shopkeepers add a markup on cost and then think of it as margin, which overstates profit. If you think in markup, use the Target markup mode here and read the margin it shows before you decide.
Does the cost include rent and salaries?
No. Put only the cost of the item itself here: purchase price plus freight, loading and packing. Rent, salaries and bills are fixed costs; they are covered by the total profit from many sales. To see how much you must sell to cover them, use the break-even calculator with your average margin from this tool.
Related
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Discount Calculator
Find the sale price after a percentage or rupee discount, or the discount % between two prices. Add your cost to see the profit left after the discount and how many more items you must sell to earn the same profit, before you announce a sale.
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Break-even Calculator
Find how much you must sell each month and each day to cover rent, salaries and bills, and how much more to reach the profit you want. Use a single item's price and cost, or your shop's average margin when you sell hundreds of products.
Article
How to Calculate Profit Margin for Your Shop
Margin and markup explained with simple rupee examples, the difference between gross and net profit, how to price loose and packaged goods, and the hidden costs that make a busy shop earn less than it should.
