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Profit Loss Calculator

Calculate profit or loss amount and percentage from cost and selling price.

Profit or loss from cost and selling price

₹
₹

profit

₹200

Markup (on cost)

25.0%

Margin (on price)

20.0%

Cost

₹800

Selling

₹1,000

Markup and margin differ — markup is profit ÷ cost, margin is profit ÷ selling price.

📈Profit, loss — and the markup vs margin trap

This calculator finds your profit or loss from a cost and selling price, works out the selling price you need for a target profit, or recovers the cost price behind a sale. Crucially, it shows both markup and margin — two numbers people mix up all the time, which leads to under-pricing.

🧠Markup is not margin

Markup is profit as a percentage of your cost. Margin is profit as a percentage of your selling price. They describe the same profit but from different bases, so the same sale has two different percentages. A 25% markup is only a 20% margin — assuming they're equal is a classic pricing mistake.

Buy at ₹800, sell at ₹1,000: profit is ₹200. That's a 25% markup (200 ÷ 800) but a 20% margin (200 ÷ 1,000). To hit a 20% margin from an ₹800 cost you must sell at ₹1,000, not ₹960.

🧮The formulas

Profit = Selling − Cost
Markup % = Profit ÷ Cost × 100   Margin % = Profit ÷ Selling × 100

A negative result is a loss. To price for a target margin, divide the cost by (1 − margin ÷ 100); for a target markup, multiply the cost by (1 + markup ÷ 100).

💡Pricing tips

  • Quote margins to investors and markups to suppliers — know which one you mean.
  • Higher margin means more profit kept per sale; watch it, not just revenue.
  • Factor in all costs (shipping, fees, tax) before setting the selling price.
  • Use the Selling Price mode to price a new product for the margin you actually want.

💡 Frequently Asked Questions

How do I calculate profit or loss?+

Profit or loss = Selling price − Cost price. A positive result is profit, a negative result is loss. The percentages are shown as both markup (on cost) and margin (on selling price).

What's the difference between markup and margin?+

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. For the same sale, markup is always the larger number — a 25% markup equals a 20% margin.

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

Selling price = Cost ÷ (1 − margin ÷ 100). Use the Selling Price mode and switch the basis to 'margin' to do this automatically.

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