Answers

Profit Margin Calculator answers

Margin shows how much of each rupee of sales is profit. Gross margin uses revenue minus direct cost of goods. Net margin is after all expenses including rent, salary and tax.

Margin, break-even, ROI, ROAS, CAC, CLV and commission formulas are the same in the US, UK, EU, Australia, Canada and India. What changes is the currency and whether GST, VAT or sales tax sits inside the price you typed. Say which costs you included before you compare two campaigns or two prices.

A worked check

Sell at 100, spend 60 on the product and 10 on ads, and profit is 30. Margin is 30%. ROAS on the ads is 100 / 10 = 10, which can look excellent while the margin is ordinary. Add 20% VAT on a VAT-exclusive price and the customer pays 120, but that 20 is not profit.

01. What is profit margin?

Margin shows how much of each rupee of sales is profit. Gross margin uses revenue minus direct cost of goods. Net margin is after all expenses including rent, salary and tax.

Open the Profit Margin Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

02. How do I calculate gross profit margin?

Subtract cost of goods sold from revenue, divide by revenue and multiply by 100 for percent. Our calculator does this from the sales and cost figures you enter.

Open the Profit Margin Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

03. What is a good profit margin for retail in India?

It varies by category. Grocery runs thin; specialty products higher. Compare your margin to last year and to direct competitors, not a single national average.

Open the Profit Margin Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

04. Difference between markup and margin?

Markup is profit divided by cost. Margin is profit divided by selling price. A 25% markup is not the same as 25% margin.

Open the Profit Margin Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

05. Should GST be included in revenue for margin?

For your own P and L, use taxable value excluding GST you collect and remit. For quick shop-level math, stay consistent with how you enter prices.

Open the Profit Margin Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

06. Can margin help price my product?

Yes. If you know target margin and cost, you can back-solve selling price. Try different costs to see break-even sales volume.

Open the Profit Margin Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

07. Is this margin result audited accounts?

No. You enter the numbers. For statutory filings and tax, use proper books and a CA.

Open the Profit Margin Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

08. Can I use this margin calculator at no charge?

Yes. Free for shop owners and startups, no account needed.

Open the Profit Margin Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

Keep going

These pages explain the arithmetic. They are not a loan approval, tax filing, insurance quote or investment recommendation.