Free tool

Profit Margin Calculator for Shops

This free profit margin calculator shows your profit, margin and markup from cost and selling price, and tells you what price to charge for the margin you want.

Profit margin calculator: calculator resting on a sales report

From PKR 2,500/mo · USD $10/mo

Calculate margin and price

Enter your cost and selling price, or your cost and the margin you want.

Find profit and margin

Margin (on selling price)0
Profit per unit0
Markup (on cost)0

Find the selling price

Selling price needed0

Margin = profit ÷ selling price. Markup = profit ÷ cost. They are not the same: a 25% markup is a 20% margin.

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Margin vs. markup

They sound similar but give different numbers:

  • Margin = (selling price − cost) ÷ selling price
  • Markup = (selling price − cost) ÷ cost
  • Price for a target margin = cost ÷ (1 − margin)

Example: cost Rs 800, price Rs 1,000 → profit Rs 200, margin 20%, markup 25%. If you add 20% to cost, you get Rs 960 and only a 16.7% margin.

Profit margin calculator showing margin, markup and target selling price
Standard formulas

Profit per unit

Margin %

Markup %

Target price

Works on mobile

Nothing is saved

Using margins in your shop

Different categories carry different margins. Packaged groceries often run on thin margins while accessories and loose items can carry more. Check the margin on your top sellers first; a small price change on a fast mover matters more than a big change on a slow one.

Remember to use your real cost, including transport or loading charges. Prices from suppliers change, so recheck margins after each purchase. Our stock management tips cover reorder and pricing basics.

theDukanPOS records cost prices from your purchases and shows profit in reports, so you do not have to calculate each item by hand. See all free tools.

Frequently asked questions

It varies by category. Compare margins within the same category and focus on your best sellers.

No. Margin is profit divided by selling price; markup is profit divided by cost.

No. Use the sales tax calculator separately if your prices include tax.

Ready to run your business on theDukanPOS?

Try every feature free for 15 days. Questions? Call or WhatsApp 0312 7032292 and talk to a real person.