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Profit Margin / Markup

Profit Margin / MarkupCost → MRP at target margin %. Fast, free and secure — works in your browser. By AK Computer, Dwarka.

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How to use

  1. 1 Enter the cost price of the product.
  2. 2 Choose whether to target margin or markup percentage.
  3. 3 Enter the desired percentage.
  4. 4 Read the recommended selling price or MRP.

Frequently Asked Questions

What is the difference between margin and markup?

Markup is profit as a percentage of cost, while margin is profit as a percentage of selling price. A 25% markup on 100 rupees cost gives a 125 rupee price, which is only a 20% margin.

How do I set a selling price for a target margin?

Divide the cost by (1 minus the margin). For a 20% margin on a 4,000 rupee cost, the selling price is 4000 divided by 0.8, which is 5,000 rupees before GST.

Why is a healthy margin important for a computer shop?

Hardware prices move fast and warranty support has a cost. A sensible margin covers overheads, service, returns and price fluctuations so the shop stays profitable rather than just breaking even.