Margin Table — Common Scenarios
| Cost Price | 10% Margin | 20% Margin | 30% Margin | 50% Margin | Profit at 20% |
|---|
Key Formulas
Profit Margin %
(Profit ÷ Selling Price) × 100
What % of your selling price is profit. Industry standard measurement.
Markup %
(Profit ÷ Cost Price) × 100
How much above cost you are selling. 20% margin ≠ 20% markup.
Selling Price from Margin
Cost ÷ (1 − Margin%/100)
To get 30% margin on cost of ₹700: 700 ÷ 0.7 = ₹1000
Selling Price from Markup
Cost × (1 + Markup%/100)
30% markup on ₹700: 700 × 1.3 = ₹910
Margin vs Markup — What is the Difference?
Profit Margin is calculated on the selling price. If you buy for ₹800 and sell for ₹1000, your profit is ₹200 and your margin is 20% (200÷1000). This is how most businesses and investors measure profitability.
Markup is calculated on the cost price. The same example — ₹200 profit on ₹800 cost — gives a markup of 25% (200÷800). Retailers often use markup when pricing products.
Common Indian retail margins: Grocery stores: 5-15%. Electronics: 10-20%. Clothing: 30-50%. Restaurants: 60-70% on food cost. Pharmacy: 15-25%.
GST Note: Your margin calculation should ideally be done on the ex-GST price. If you charge GST to customers, the selling price includes GST — your actual margin is calculated on the base price before GST.