Profit Margin Calculator कसरी प्रयोग गर्ने — Profit margin vs markup: calculation guide
Understand the difference between margin and markup, calculate both correctly and avoid pricing decisions based on the wrong percentage.
Margin = profit ÷ selling price × 100. Markup = profit ÷ cost × 100. They use different bases and are not interchangeable.
Understand the difference between margin and markup, calculate both correctly and avoid pricing decisions based on the wrong percentage. The linked Sellible tool keeps the fields, units and output together so the assumptions can be reviewed before the result is used.
- 1
Enter cost and selling price excluding or including tax consistently.
- 2
Review gross profit, margin and markup together.
- 3
Model price changes before publishing or quoting.
Example values and result
These values demonstrate the method; replace them with measurements, rates or file details that match the real task.
- Cost
- £60
- Selling price
- £100
- Profit
- £40
- Margin / markup
- 40% / 66.67%
A 40% margin on £100 is the same £40 profit that represents a 66.67% markup on £60 cost.
शुद्धता र व्यावहारिक मार्गदर्शन
- Include variable costs relevant to the decision.
- Separate gross margin from net business profit.
- Check marketplace fees, discounts and tax treatment.
Common mistakes
- Setting a 40% markup when the target is a 40% margin.
- Mixing VAT-inclusive revenue with VAT-exclusive cost.
- Treating gross margin as money available after every overhead.
A free account makes repeat tasks simpler
Email-link sign-in keeps file jobs, downloads, support and usage available across devices. Browser calculators remain free.
बारम्बार सोधिने प्रश्नहरू
Is Profit Margin Calculator free?
Yes. This calculator or browser utility is free and does not use processing credits.
Can I use this guide and Profit Margin Calculator on a phone?
Yes. The guide, inputs, results and calls to action are responsive and keyboard accessible on current phones, tablets and desktop browsers.
Should I order or make a decision from the estimate alone?
No. Include variable costs relevant to the decision. Separate gross margin from net business profit. The calculation is a planning aid rather than professional or regulatory approval.
How should I check the result?
Keep the source values and units visible, compare the result with supplier or project information, and retain enough precision until the final purchasing or reporting step.