Margin Calculator

Calculate the selling price and profit for a product given its cost price and desired profit margin (margin on selling price).

  • Free to use
  • No registration required
  • Works on all devices
Last updated
12-09-2026
Enter the cost price and desired profit margin percentage to calculate the selling price and profit amount, where margin is a percentage of the selling price.
₹
What it costs you to acquire or produce the item.
%
The profit margin as a percentage of the selling price (must be less than 100%).

Your result

₹1,000

Selling price

Profit amount₹200

AI explanation

Formula

Selling price = Cost price / (1 − Margin% / 100); Profit amount = Selling price − Cost price

Worked example

20% profit margin on a ₹800 cost price

Worked example: 20% profit margin on a ₹800 cost price
FieldValue
Cost price₹800
Desired profit margin20
Selling price₹1,000
Profit amount₹200

Assumptions

  • Margin is calculated as a percentage of the selling price, not cost price (see the Markup Calculator for markup as a percentage of cost).
  • A margin of 100% or more is mathematically undefined (it would require infinite or negative selling price) and is not accepted.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price. Markup is the same rupee profit as a percentage of the cost price. For the same rupee profit, margin% is always lower than markup% — for example, ₹200 profit on a ₹1,000 selling price is a 20% margin but a 25% markup on the ₹800 cost.

Why can't margin be 100% or more?

A 100% margin would mean the cost price is zero, which is mathematically undefined in the margin formula (division by zero). In practice, margins on physical goods are almost always well below 100%.

How do I convert a target margin into a selling price?

Divide the cost price by (1 − margin as a decimal). For a 20% margin, divide the cost price by 0.80 — this calculator does that for you.

Which should I use for retail pricing — margin or markup?

Margin is the standard convention in retail, since it directly tells you what % of each sale is profit — useful for comparing profitability across products regardless of their cost. Markup is more common in wholesale/manufacturing contexts.

Related calculators

Markup CalculatorDiscount CalculatorGST Calculator

Related articles

Finance1 min read

How Markup and Margin Turn a Cost Price Into a Selling Price

Markup adds a percentage of the cost price on top to reach a selling price, while margin works backward from the selling price itself — two different bases for the same percentage idea, each producing a different selling price from the identical cost and rate.

Read guide
Finance1 min read

Why a 25% Markup and a 20% Margin Can Describe the Identical Sale

Running the same ₹800 cost price through the markup calculator at 25% and the margin calculator at 20% produces exactly the same ₹1,000 selling price and ₹200 profit — two different-sounding percentages describing one identical transaction.

Read guide

Sources

Page last updated 12-09-2026.

This calculator provides a general business arithmetic estimate and does not account for taxes, overheads, or industry-specific pricing conventions.

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