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PakCalc

Profit Margin & Markup Calculator

Margin and markup are often confused — and the difference can cost a business money. Enter a cost and price, or the margin you want, and see both.

Updated

PKR
PKR

Result

20% margin

Selling at Rs 1,000.00: margin 20%, markup 25%, profit Rs 200.00

Selling price
Rs 1,000.00
Profit per unit
Rs 200.00
Gross margin (profit ÷ price)
20%
Markup (profit ÷ cost)
25%

Formula

Margin = (Price − Cost) ÷ Price × 100

Markup = (Price − Cost) ÷ Cost × 100

Price for margin m = Cost ÷ (1 − m)

A 25% markup is only a 20% margin. To get a 25% margin you need a 33.3% markup.

Examples

  • Cost Rs 800, price Rs 1,000

    Selling at Rs 1,000.00: margin 20%, markup 25%, profit Rs 200.00

  • Cost Rs 1,200, want 30% margin

    Selling at Rs 1,714.29: margin 30%, markup 42.86%, profit Rs 514.29

  • Cost Rs 500, 40% markup

    Selling at Rs 700.00: margin 28.57%, markup 40%, profit Rs 200.00

Reference table

Markup needed for common margins
MarginMarkup
10%11.1%
20%25%
25%33.3%
30%42.9%
40%66.7%
50%100%

Important information

  • Margin can never reach 100%; markup has no upper limit.

Frequently asked questions

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 cost.

What is a good profit margin?

It varies by industry — grocery retail runs on thin margins (a few %), while software and services can exceed 50%.

How do I price for a 30% margin?

Divide the cost by 0.7. A Rs 700 cost becomes Rs 1,000.

Learn more

  • How to Add or Remove 18% GST — The right way to add 18% sales tax to a price and to take it out of a tax-inclusive total — and the common mistake that gives the wrong answer.