Free calculator · Retail and grocery
Enter what an item costs you and what you sell it for. See the profit, the margin and the markup, and the price you would need for the margin you want.
Profit = selling price − cost price.
Margin = profit ÷ selling price × 100. It tells you how much of each sale you keep.
Markup = profit ÷ cost price × 100. It tells you how much you added to the cost.
Price for a target margin = cost ÷ (1 − target margin ÷ 100).
A shirt costs you ₹400 and sells for ₹600. Profit is ₹200. The margin is ₹200 ÷ ₹600 = 33.3%; the markup is ₹200 ÷ ₹400 = 50%. To earn a 35% margin you would need to charge ₹400 ÷ 0.65 = ₹615.38.
Both use the same profit, but margin divides it by the selling price and markup divides it by the cost. The selling price is larger than the cost, so the margin percentage is always the smaller of the two.
No. Use prices without GST for both cost and selling price. GST you collect is not your income, and GST you can claim back is not your cost.
It depends on the category, your rent, wages and how fast stock sells. Work out your own break-even point first, then set margins that cover it with room to spare.
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You do not need fifty reports to run a small business well. These ten numbers, each with a formula and a worked example from one shop's month, tell you whether you are making money, where it is stuck and what to do next.
A restaurant can hit its food cost target and still make no money. Food cost percentage and profit margin answer different questions, and you need both. Here is how they connect, dish by dish and month by month.
Break-even is the level of sales at which your business stops losing money. Here is how to sort your costs, calculate it in units and rupees, and use it before you change a price or sign a lease.
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