# Profit Margin Calculator: Gross and Net Margin > Profit margin calculator: enter cost and price for gross and net margin and markup, or set a target margin to get the price to charge, and monthly profit. Source: https://trykosh.com/tools/profit-margin-calculator Free tool - Business and GST # Profit margin calculator See what share of each sale you actually keep, before and after the other costs of selling. Or work backwards from the margin you want to the price you should charge. Rules checked 25 October 2026Free - no sign-upRuns in your browser Gross margin 35% INR 350.00 gross profit on every INR 1,000.00 sale Net margin**27%** Markup on cost**53.8%** Net profit a month**INR 81,000** Cost **INR 650**Other costs **INR 80**Net profit **INR 270** Selling price INR 1,000.00 − Cost of the product INR 650.00 Gross profit INR 350.00 − Other costs per unit INR 80.00 Net profit per unit INR 270.00 Net profit on 300 units INR 81,000 Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup is only a 33.3% margin. ## Upload your statement and Kosh does this for you. Upload your bank statements and Kosh separates business from personal spending and keeps your tax and GST dates in view. [Start free](/signup?via=tool-profit-margin-calculator) ## How the profit margin calculator works Gross margin is the profit on the product itself as a share of the selling price: (price − cost) / price. If you buy at INR 650 and sell at INR 1,000, you keep INR 350, a 35% gross margin. Use prices before GST: if you're registered, the GST you collect and pay is not your revenue or your cost. Net margin goes further and takes off the other per-unit costs of selling, such as shipping, packing, payment fees and commission. In the same example, INR 80 of such costs leave INR 270 a unit, a 27% net margin. That is the number that pays your rent and salaries. To price for a target margin, switch the mode. The price is cost / (1 − margin). For a 35% margin on a INR 650 cost, that's INR 650 / 0.65 = INR 1,000. Adding 35% to cost instead (INR 877.50) gives only a 25.9% margin, which is the classic pricing mistake. The result also shows the markup on cost, so you can talk to suppliers and distributors in whichever terms they use, and your monthly net profit at the volume you enter. Gross margin = (price − cost) / price x 100; Price for a margin m = cost / (1 − m) Net margin (price − cost − other costs) / price x 100 ## Worked example: Neha, handmade candles from Kochi, pricing for a 40% margin Each candle costs Neha INR 210 in wax, jar and fragrance, and another INR 45 in packing and courier. She wants a 40% gross margin. The price is INR 210 / 0.60 = INR 350, a 66.7% markup on cost. After the INR 45 of other costs she keeps INR 95 a candle, a 27.1% net margin, or INR 47,500 a month on 500 candles. Price for a 40% margin INR 350.00 Gross profit INR 140.00 a unit - markup 66.7% Net margin**27.1%** Markup on cost**66.7%** Net profit a month**INR 47,500** Cost **INR 210**Other costs **INR 45**Net profit **INR 95** Selling price INR 350.00 − Cost of the product INR 210.00 Gross profit INR 140.00 − Other costs per unit INR 45.00 Net profit per unit INR 95.00 Net profit on 500 units INR 47,500 Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup is only a 33.3% margin. [Load this example into the calculator ->](?mode=price&cost=210&target=40&overheads=45&units=500#calculator) ## Good to know - Always compare margins on GST-exclusive figures. Mixing an inclusive price with an exclusive cost inflates the margin by the tax rate. - A healthy gross margin varies widely: grocery retail runs on single digits, while software and services often clear 60%. Compare yourself with your own category, not with businesses in general. - Discounts hit margin harder than they look: a 10% discount on a 30% margin product cuts your profit per unit by a third. - Your own time is a cost too. If you don't pay yourself a salary, your net margin overstates how good the business is. ## Frequently asked questions What is the difference between margin and markup? Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. Buying at INR 100 and selling at INR 150 is a 50% markup but a 33.3% margin. The same rupee profit, two different percentages. How do I calculate net profit margin? Take the selling price, subtract the product cost and every other cost of making the sale, and divide by the selling price. For a whole business, use net profit after all expenses divided by revenue for the period. Should profit margin be calculated with or without GST? Without. GST you collect belongs to the government, and GST on purchases comes back as input tax credit if you're registered. If you're not registered, the GST you pay on purchases is part of your cost, but your price still shouldn't include tax you don't collect. What is a good profit margin for a small business in India? It depends on the trade. Distributors and kirana stores often work on 5% to 15% gross margins with high volume, D2C brands aim for 50% or more to cover marketing, and service firms typically target 20% to 30% net. Compare with businesses in your own segment. ## Sources and assumptions - [CBIC GST portal](https://cbic-gst.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.