Profit & Loss / Margin Calculator

Compute profit, loss, margin %, markup % and break-even point for your business.

About this calculator

A profit and loss (P&L) calculator finds the absolute profit or loss on a transaction, plus the corresponding margin and markup percentages. These three figures — P&L, margin, and markup — together describe whether a sale was good business.

Margin and markup are easily confused. Margin is profit as a percentage of selling price; markup is profit as a percentage of cost. A 50% markup gives a 33.3% margin. Retailers usually talk in margin; manufacturers and wholesalers usually talk in markup. Knowing which one you are quoting matters when comparing across the supply chain.

Formula

\text{Margin}\% = \frac{SP - CP}{SP} \times 100 \;;\; \text{Markup}\% = \frac{SP - CP}{CP} \times 100

  • CP — Cost Price
  • SP — Selling Price
  • Profit — SP − CP (loss if negative)

Worked example

Inputs: Cost: ₹800 · Selling: ₹1,200

  1. Profit = 1,200 − 800 = ₹400
  2. Margin = 400 ÷ 1,200 × 100 = 33.33%
  3. Markup = 400 ÷ 800 × 100 = 50%

Frequently asked questions

What is a healthy margin for a retail business?

It varies dramatically by sector. Supermarkets run on 2–4% net margin; restaurants 5–10%; specialty retailers 15–30%; SaaS companies often 70%+. Industry benchmarks matter more than absolute numbers — a 12% net margin is excellent for a grocery store but poor for a software product.

How do I price for a target margin?

Selling Price = Cost ÷ (1 − Target Margin). For a 40% margin on a ₹600 cost: SP = 600 ÷ 0.6 = ₹1,000. A common pricing error is to "add 40% markup" to cost (₹600 × 1.4 = ₹840), which actually gives only a 28.6% margin — significantly less.

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