How is profit percentage calculated?

Profit percentage = (Selling price − Cost price) ÷ Cost price × 100. It is calculated on the cost price unless stated otherwise.

How is loss percentage calculated?

Loss percentage = (Cost price − Selling price) ÷ Cost price × 100.

What is the difference between markup and margin?

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same profit always gives a higher markup than margin.

Should I include GST in cost price?

If you can claim input tax credit, use the price without GST. If you cannot, include GST in your cost.

Profit and Loss Calculator – Profit %, Margin

How to use the Profit & Loss Calculator

Enter the cost price of one unit.
Enter the selling price and, if needed, the quantity.
See your profit or loss, profit percentage and margin instantly.
To set a price, switch to Find selling price and enter your target profit %.

Formula

Profit = Selling price − Cost price

Profit % = Profit ÷ Cost price × 100

Margin % = Profit ÷ Selling price × 100

Selling price for a target profit = Cost × (1 + Profit% ÷ 100).

Worked example: Buying at ₹800, selling at ₹1,000

Profit = ₹1,000 − ₹800 = ₹200 per unit.

Profit % on cost (markup) = 200 ÷ 800 × 100 = 25%. Margin on sale = 200 ÷ 1,000 × 100 = 20%.

Selling 50 units earns ₹10,000 in profit.

Markup vs margin

Markup (profit on cost) and margin (profit on sale) describe the same profit from different bases, and confusing them is a common pricing mistake. A 25% markup gives only a 20% margin. If you need a 25% margin, you must mark up by 33.3%.