Calculate gross profit margin percentage and cost markup percentage from cost and selling price.
Result
Profit margin is calculated on Selling Price. Markup is calculated on Cost Price.
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Margin% = [(SP - CP) / SP] x 100 | Markup% = [(SP - CP) / CP] x 100
Cost price ₹800 and Selling price ₹1,000.
Profit margin: 20.00% | Markup: 25.00% | Net profit: ₹200.
Calculate profit or loss amount and percentage from cost price and selling price.
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Open calculatorProfit margin is profit divided by Selling Price (revenue). Markup is profit divided by Cost Price. For instance, buying for ₹800 and selling for ₹1,000 represents a 25% markup on cost, but a 20% margin on revenue.
No. Because profit cannot exceed the selling price unless cost is negative, gross margin cannot exceed 100%. Markup, on the other hand, can easily be 200%, 500%, or higher.
Conflating margin and markup is a frequent cause of pricing errors in retail and wholesale operations. If a business needs a 20% margin to cover overheads, adding a 20% markup will leave them short.