Profit Margin Calculator: Margin, Markup and Selling Price with GST
Work out your profit, margin and markup from cost and selling price, or find the price that gives the margin you want. It handles GST-inclusive and exclusive prices at the 2025 rates (5%, 18%, 40%), input tax credit, marketplace fees and shipping you enter, discounts, returns and break-even units, for one product or a whole price list. In English or Hindi, free and with no sign-up.
By ScaleSaathi Editorial · GST rates last checked 22 Oct 2026 · Sources
Pricing traps this calculator helps you avoid
- ✓ Margin is not markup: ₹200 profit is a 25% margin but a 33.33% markup, and adding 30% to cost gives only a 23.08% margin.
- ✓ Margin is worked out on the price before GST. Whether GST on purchases is a cost depends on your GST status; composition dealers get no input tax credit.
- ✓ Marketplace fees are not pre-filled; enter your own rate card. In the page’s illustrative example a 40.94% gross margin becomes 15.56% net, and a 20% discount turns it into a loss.
- ✓ GST rates last checked 22 October 2026. Not tax or accounting advice.
Profit and Margin Calculator
Margin, markup, selling price, GST, marketplace fees, discounts and break-even. Free, no sign-up, runs in your browser.
1. Cost and price
2. GST
3. Selling fees and other costs (online sellers)
4. Discount and break-even
Paste from Excel or Google Sheets
How to use the profit margin calculator
- Find my margin: enter your cost price and selling price, and say whether each includes GST.
- Pick the GST rate on your sale and your GST status (input tax credit, no credit, composition or not registered).
- Online seller? Open Selling fees and type your commission, payment fee, fixed fee, shipping, the GST on those fees and any returns cost.
- Add a discount and your fixed costs per month to see the discount table and break-even units.
- Need a price instead? Use Find selling price: enter a target net margin, markup or ₹ profit and choose how to round. For a quick conversion use Margin ⇄ markup; for a price list use Many products.
Results update as you type. Print or save them as a PDF, copy a summary, or copy a link that keeps your inputs.
Profit, margin and markup formulas
| What | Formula | Example (cost ₹600, price ₹800 before GST) |
|---|---|---|
| Profit | Selling price − cost | ₹800 − ₹600 = ₹200 |
| Profit margin % | Profit ÷ selling price × 100 | 200 ÷ 800 = 25% |
| Markup % (profit % on cost) | Profit ÷ cost × 100 | 200 ÷ 600 = 33.33% |
| Selling price for a target margin | Cost ÷ (1 − margin) | 600 ÷ 0.75 = ₹800 |
| Selling price for a target markup | Cost × (1 + markup) | 600 × 1.3333 = ₹800 |
| Price before GST from an inclusive price | Price ÷ (1 + GST rate) | ₹944 ÷ 1.18 = ₹800 |
| Break-even units | Fixed costs ÷ profit per unit | ₹30,000 ÷ ₹200 = 150 units |
Margin vs markup
The same ₹200 profit is a 25% margin (on the ₹800 price) and a 33.33% markup (on the ₹600 cost). Margin can never reach 100%, while markup can be any size. Mixing them up is the most common pricing mistake: if you want a 30% margin and add 30% to cost, you get only 23.08%.
| Margin | Same as markup of |
|---|---|
| 10% | 11.11% |
| 20% | 25% |
| 23.08% | 30% |
| 25% | 33.33% |
| 30% | 42.86% |
| 33.33% | 50% |
| 40% | 66.67% |
| 50% | 100% |
| 60% | 150% |
GST and your margin
GST you charge a customer is collected for the government, so margin is worked out on the price before GST. From 22 September 2025 most goods and services are taxed at 5% or 18%, with 40% for a short list of sin and luxury goods, and 3% for gold and jewellery (PIB). An inclusive price of ₹1,180 at 18% is ₹1,000 of sales and ₹180 of GST. To split any amount into CGST, SGST and IGST, use our GST calculator; to bill the customer, use the GST bill maker.
How GST on your purchases is treated depends on your GST status:
| Your status | Your revenue is | Your cost is | GST you pay |
|---|---|---|---|
| Registered, claims input tax credit | Price before GST | Price before GST (input GST is a credit) | Output GST − input GST − GST on fees |
| Registered, no input tax credit | Price before GST | Price including GST | Full output GST |
| Composition scheme | Full price (no GST charged to the buyer, s.10(4)) | Price including GST (no credit, s.10(4)) | Composition tax on turnover, from your profit |
| Not registered | Full price | Price including GST | None |
Worked example: an online seller
A product costs ₹500 before GST (18%, credit claimed) and sells for ₹999 including 18% GST on a marketplace. The seller's rate card (example figures, not any platform's real rates) shows 10% commission and 2% payment fee on the order value, a ₹20 fixed fee and ₹60 shipping, all with 18% GST; packing is ₹15. Load example in the calculator fills these values.
| Line | Amount |
|---|---|
| Selling price (incl. 18% GST) | ₹999.00 |
| Net sale value before GST (999 ÷ 1.18) | ₹846.61 |
| Cost of goods (before GST, ITC claimed) | −₹500.00 |
| Gross profit / gross margin | ₹346.61 / 40.94% |
| Commission 10% + payment fee 2% on ₹999 | −₹119.88 |
| Fixed fee ₹20 + shipping ₹60 | −₹80.00 |
| Packing and other cost | −₹15.00 |
| Profit per unit / net margin | ₹131.73 / 15.56% |
| Markup on cost | 69.32% |
| GST payable: 152.39 − 90.00 input − 35.98 on fees | ₹26.41 |
| Break-even at ₹30,000 fixed costs a month | 228 units |
| Largest discount before a loss | 18.13% |
| Price for a 20% net margin, rounded to end in 9 | ₹1,069 (exact ₹1,066.37) |
The 40.94% gross margin shrinks to a 15.56% net margin once fees are paid. A 20% discount turns it into a loss.
Discounts, returns and break-even
Because cost stays the same, each 1% off the price takes much more than 1% off your profit. The discount table shows profit at 0% to 50% off and the largest discount before a loss. If you sell online, add your returns or RTO rate and the cost of one return so they are spread across every order. Break-even units are your fixed costs divided by profit per unit; add expected monthly units to see the month's profit after fixed costs.
Many products at once
The Many products tab works like a small price list: add rows or paste them from a spreadsheet, set the GST rate per row, and see each product's profit, margin and markup, the total profit and the overall (weighted) margin. Rows below your minimum margin are highlighted. Download it as CSV for Excel or Google Sheets.
What counts as a good profit margin?
There is no single good figure. It depends on the trade, how fast stock sells, and your fixed costs. Rather than chase a benchmark, use the break-even box: a margin is good enough when profit per unit times realistic monthly sales comfortably covers your fixed costs. Compare your own margins month by month and product by product.
हिन्दी में: लाभ और मार्जिन कैसे निकालें
लाभ = बिक्री मूल्य − लागत। मार्जिन % = लाभ ÷ बिक्री मूल्य × 100। मार्कअप (लागत पर लाभ प्रतिशत) = लाभ ÷ लागत × 100। किसी लक्ष्य मार्जिन के लिए बिक्री मूल्य = लागत ÷ (1 − मार्जिन)। GST सहित कीमत हो तो पहले उसे (1 + GST दर) से भाग दें। कैलकुलेटर के ऊपर हिन्दी बटन दबाकर पूरा टूल हिन्दी में इस्तेमाल करें।
Compared with other margin calculators
What other margin calculators often miss:
| Feature | Typical calculator page | ScaleSaathi |
|---|---|---|
| Margin and markup from cost and price | All | Yes |
| Selling price from a target margin, markup or ₹ profit | About half | Yes, after GST and all fees, with price rounding (₹x9, ₹x99) |
| GST-inclusive and exclusive prices | A few (one still uses the old 12% slab in its example) | Yes, with 2025 rates 5%, 18%, 40% and 3% |
| Input tax credit, composition, unregistered | None found | Yes, treated separately |
| Marketplace commission, payment fee, fixed fee, shipping, GST on fees | A few, usually as one cost box | Yes, as your own inputs, plus platform payout |
| Returns / RTO cost | Rare | Yes |
| Discount impact table and largest safe discount | None found | Yes |
| Break-even units and monthly profit | A few explain it; few calculate | Yes |
| Many products at once, paste from Excel, CSV | Rarely offered elsewhere | Yes, up to 200 rows |
| Hindi | Rare | Full Hindi interface |
| Print / save as PDF, shareable link | Rare | Yes |
| Sign-up prompts and product promotion | Most pages | None |
Frequently asked questions
How do I calculate profit margin?
Profit margin = profit ÷ selling price × 100, where profit = selling price − cost. Example: cost ₹600, selling price ₹800 (both before GST). Profit is ₹200 and margin is 200 ÷ 800 × 100 = 25%. If your price includes GST, first take GST out: price ÷ (1 + GST rate). The calculator does this for you.
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. On cost ₹600 and price ₹800, profit ₹200 is a 25% margin but a 33.33% markup. Markup = margin ÷ (100 − margin) × 100, and margin = markup ÷ (100 + markup) × 100. A 100% markup is a 50% margin. A 30% markup is only a 23.08% margin.
How do I find the selling price for a target margin?
Selling price = cost ÷ (1 − margin). For a 25% margin on cost ₹600: 600 ÷ 0.75 = ₹800 before GST. Add GST on top for the customer price: at 18% that is ₹944. If you also pay commission or other percentage fees, use the Find selling price tab: it solves the price so the margin is left after all fees, GST and fixed costs per order.
How do I calculate profit percentage on cost price?
Profit percentage (as taught in school maths) = profit ÷ cost price × 100. It is the same as markup. Cost ₹600 and selling price ₹800 give 200 ÷ 600 × 100 = 33.33% profit. Loss percentage = loss ÷ cost price × 100.
Should I calculate margin on the price with GST or without GST?
Without GST. If you are registered and charge GST, the GST you collect is paid to the government, so it is not your revenue. Calculating margin on a GST-inclusive price makes your margin look larger than it is. Choose Selling price is: Including GST and the calculator removes the GST first.
Is GST on my purchases part of my cost?
It depends on input tax credit (ITC). If you are registered and can claim ITC (CGST Act, section 16), the GST on purchases is set off against the GST you charge, so your cost is the price before GST. If you cannot claim ITC, or you are under the composition scheme or not registered, the GST you paid is part of your cost. Pick your GST status and the calculator treats it the right way.
What GST rates should I use in 2026?
From 22 September 2025 the GST Council moved to two main rates, 5% and 18%, and a 40% rate for a small list of sin and luxury goods (PIB, 3 September 2025). Gold, silver and jewellery stay at 3%. Cigarettes, pan masala and tobacco moved to 40% from 1 February 2026. Check the rate for your item with our GST calculator.
How does a discount change my profit margin?
A discount cuts the price but not the cost, so profit falls faster than the price. In the example above (₹999 price, 18% GST, ₹500 cost and online fees) a 10% discount cuts the price by 10% but cuts profit by more than half, from ₹131.73 to ₹59.06. The calculator shows a discount table and the largest discount you can give before you make a loss. A discount shown on the invoice reduces the value on which GST is charged (CGST Act, section 15(3)).
How do I include Amazon, Flipkart or Meesho fees?
Open Selling fees and enter the commission or referral fee %, payment fee %, fixed or closing fee and shipping cost from your own seller rate card or settlement report, and the GST charged on those fees. Fees differ by category, price band and programme and change often, so we do not pre-fill any platform's figures. The calculator also shows what the platform pays you before any TDS or TCS it deducts.
What is break-even and how is it calculated?
Break-even is the number of units you must sell to cover your fixed costs, such as rent and salaries. Break-even units = fixed costs per month ÷ profit per unit (after cost of goods, fees and other per-unit costs). With ₹30,000 fixed costs and ₹131.73 profit per unit you need 228 units a month.
What is the difference between gross margin and net margin?
Gross margin uses only the cost of goods: (sales − cost of goods) ÷ sales. Net margin in this calculator also takes off selling fees, shipping, GST you cannot claim back, other per-unit costs, returns and composition tax. For a business's full net profit margin you would also take off fixed costs, interest and income tax; enter fixed costs in the break-even box to see the monthly result.
Can I calculate margins for many products at once?
Yes. Open the Many products tab, add rows or paste them from Excel or Google Sheets (name, cost, price, GST %, quantity, fees). You get profit per unit, margin, markup and total profit for each product, the overall margin, and rows below your minimum margin are flagged. Download the table as CSV or print it.
Does the calculator work for composition dealers?
Yes. Choose Composition scheme. A composition dealer cannot collect tax from buyers or claim input tax credit (CGST Act, section 10(4)), so the price you charge is your full revenue, GST on purchases is part of your cost, and the composition tax you enter is taken from your profit.
Is the calculator free and is my data private?
It is free with no sign-up. Every calculation runs in your browser and nothing is uploaded. Copy link to this calculation puts your inputs in the page address so you can bookmark or share them yourself. Use Print / Save as PDF to keep a copy.
Profit margin kaise nikale? (लाभ मार्जिन कैसे निकालें)
मार्जिन % = (बिक्री मूल्य − लागत) ÷ बिक्री मूल्य × 100। उदाहरण: लागत ₹600, बिक्री मूल्य ₹800, लाभ ₹200, मार्जिन 25%। लाभ प्रतिशत (लागत पर) = 200 ÷ 600 × 100 = 33.33%। GST सहित कीमत हो तो पहले GST हटाएँ। कैलकुलेटर में हिन्दी बटन दबाकर हिन्दी में इस्तेमाल करें।
Sources
GST rules last checked 22 October 2026 on official sites. Rates change, so confirm your item's rate before you price.
- PIB: GST Council recommends rate rationalisation, 5% and 18% with 40% de-merit rate (3 Sep 2025)
- GST Council FAQ on the rate changes effective 22 Sep 2025
- PIB FAQ: Notification 9/2025-Central Tax (Rate) for goods rates
- Gazette of India: Notification 9/2025-Central Tax (Rate), schedules incl. 3% for gold and jewellery
- GST Council newsletter, Dec 2025: tobacco and pan masala to 40% from 1 Feb 2026
- CBIC: CGST Act, 2017 (s.10 composition, s.15 value of supply and discounts, s.16 input tax credit)
- CBIC FAQ on GST (CGST, SGST and IGST)
More free tools: all calculators · GST calculator · GST bill maker · profit and loss account format
This calculator does arithmetic on the figures you enter and is not tax or accounting advice. Marketplace fees in the example are illustrative, not any platform's actual rates.