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Profit margin & markup calculator
Know exactly what you make on every item — and what to charge for the margin you want.
1 · I know my cost and sale price
2 · What should I charge?
| Margin | Sell at | Profit |
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Margin or markup — the mistake that costs shops money
Markup is profit as a percentage of cost. Margin is profit as a percentage of the sale price. They are not the same number.
Buy at Rs 800, add 20% markup and you sell at Rs 960 — but your margin is only 16.7%. If you wanted to keep 20 rupees of every 100 you take at the counter, you need to sell at Rs 1,000 (25% markup).
That gap is why a shop can feel busy and still end the month short. Your POS software should show margin on every item, so you can see which products actually pay the rent.
See the margin on every sale, automatically
iPOS.NET shows item-wise profit and a daily profit report from your real purchase costs — no calculator needed.
What is a good profit margin for a shop?
It depends on the trade. Grocery staples often run on thin margins, while garments, cosmetics and accessories carry much more. Compare items within your own shop rather than chasing one number.
Should I include transport and packing in cost?
Yes. Your true cost is everything you pay to get the item onto the shelf — purchase price plus freight, loading and packing.