Margin and markup sound similar but answer different questions: margin is profit as a share of the selling price, markup is profit as a share of cost. Mixing them up misprices products. Enter your cost and selling price (revenue) to get profit in rupees, margin % and markup % — with the distinction explained clearly.
What the product costs you (materials, making, delivery).
Profit margin
40.00%
Profit ÷ selling price
Profit = selling price − cost
Margin % = profit ÷ selling price × 100
Markup % = profit ÷ cost × 100
The denominators differ: margin divides by what the customer pays, markup divides by what you spent. Markup is always higher than margin on the same numbers (except at 0).
Cost ₹600, selling price ₹1,000:
Same ₹400 profit — but "40% margin" and "66.67% markup" describe it differently.
Profit margin is the headline number for business health — it tells you what share of every rupee of sales you keep. Markup is the pricing tool: "I need 50% markup on cost" is how many sellers set prices. Profit is the absolute rupee gain per unit.
Rule of thumb: quote margin when talking profitability, use markup when setting prices — and never present one as the other.
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Content last reviewed on 2026-10-06.