Pricing Calculator
Set the right price for your products to ensure profitability.
Required Selling Price:
₹0.00
Gross Profit:
₹0.00
Markup Percentage:
0.00%
Margin vs. Markup Explained
It's a common point of confusion, but understanding the difference between profit margin and markup is vital for accurate pricing.
Markup is the amount by which the cost of a product is increased to derive the selling price. It's calculated as a percentage of the cost.
Markup % = (Gross Profit / Cost) * 100
Profit Margin is the percentage of the selling price that turns into profit.
Profit Margin % = (Gross Profit / Selling Price) * 100
As you can see from the formulas, the denominator is different. This is why a 25% profit margin does not equal a 25% markup. Our calculator helps you set a price based on your desired profit margin, which is a more common business goal.