Profit margin calculator (with GST)

Margin is profit divided by the selling price; markup is profit divided by cost. Buy at ₹750 and sell at ₹1,000 and you make ₹250: a 25% margin or a 33% markup. Enter your cost, price and GST rate below to get margin, markup, the right MRP and how much profit a discount leaves.

FreeNo sign-upWorks on your phoneNothing leaves your browser

1. Your item

Cost price per unit (₹, without GST)What you pay the supplier, after input GST credit.

Selling price (₹)

GST rate on the item

Selling price is

Your price without GST: ₹1,000.00
GST in the price (output tax): ₹180.00
Profit per unit: ₹250.00
Margin: 25%
Markup: 33.33%

2. If I give a discount

Discount on the selling price (%)

Profit per unit after discount: ₹150.00
Margin after discount: 16.67%
Profit you keep: 60%

With 10% off you keep 60% of your profit. To earn the same profit as 100 sales at full price you need about 167 sales. Discounts above 25% lose money.

Discount	Customer pays	Profit per unit	Margin	Sales to match 100
0%	₹1,180.00	₹250.00	25%	100
5%	₹1,121.00	₹200.00	21.05%	125
10%	₹1,062.00	₹150.00	16.67%	167
15%	₹1,003.00	₹100.00	11.76%	250
20%	₹944.00	₹50.00	6.25%	500
25%	₹885.00	₹0.00	0%	loss

Profit per unit at common discounts, for the item above.

3. Find the selling price for a target

Target (%)

Target is a

Selling price without GST: ₹1,071.43
Price with 18% GST (MRP): ₹1,264.29
Profit per unit: ₹321.43

How to use it

Enter cost and price. Type your cost per unit without GST, the selling price, the GST rate and whether the price includes GST. Margin, markup and profit appear at once.
Try a discount. Enter a discount % to see the profit left per unit, the share of profit you keep and how many more sales you need to earn the same.
Set a price. Enter a target margin or markup to get the selling price before GST and the MRP with GST.

Margin and markup formulas

You want	Formula	Example (cost ₹750, price ₹1,000)
Profit	Price − cost	₹250
Margin %	Profit ÷ price × 100	25%
Markup %	Profit ÷ cost × 100	33.33%
Price for a margin	Cost ÷ (1 − margin ÷ 100)	25% → ₹1,000
Price for a markup	Cost × (1 + markup ÷ 100)	33.33% → ₹1,000
Markup from margin	Margin ÷ (100 − margin) × 100	25 → 33.33
Price without GST	Price with GST × 100 ÷ (100 + rate)	₹1,180 at 18% → ₹1,000
Profit after discount	Price × (1 − discount ÷ 100) − cost	10% off → ₹150

The common mistake is to add a 30% markup and think you earn a 30% margin; you earn 23%. More in markup vs margin for retail shops and how GST works on discounts.

Questions

What is the difference between margin and markup?

Both use the same profit. Margin divides profit by the selling price; markup divides it by the cost. An item bought at ₹750 and sold at ₹1,000 makes ₹250: a 25% margin but a 33.33% markup.

How do I calculate selling price from cost and margin?

Selling price = cost ÷ (1 − margin ÷ 100). For a 30% margin on a ₹700 cost, the price is 700 ÷ 0.70 = ₹1,000 before GST. Add GST on top for the MRP: ₹1,180 at 18%.

Should I include GST when I calculate margin?

No, if you are GST registered. The GST you collect goes to the government and the GST you paid on purchases comes back as input tax credit, so work on prices without GST. This calculator removes GST from an inclusive price for you.

If I give 10% off, how much profit is left?

It depends on your margin. On a 25% margin item, 10% off the price cuts profit from 25 to 15 for every 100 of price, so you keep 60% of the profit and need about 67% more sales to earn the same.

What is the highest discount I can give without a loss?

A discount equal to your margin brings profit to zero. If your margin is 25%, any discount above 25% of the selling price loses money on that item.

What is a good profit margin for a retail shop?

It varies a lot by trade: grocery and mobile phones run thin margins, while clothing, footwear and accessories usually run higher. Compare your own items over time rather than one industry number.

See real margins, not guesses

RichPOS records the purchase cost of every item and shows profit & loss and stock valuation from your live sales, plus GST reports by HSN for your CA.

Start free trial Ask on WhatsApp

₹199/month or ₹2,000/year after a free 30-day trial. See pricing