Profit Margin Calculator
Work out profit, margin and markup from your cost and selling price, find the price for a target margin or markup, and see what a discount does to your profit. Margin and markup are not the same number, so this calculator shows both.
Prices in PKR · Last updated 28 October 2026
1. What do you know?
Check a price you already charge, or find a price from the margin or markup you want.
2. Cost and price
Use prices before sales tax. Cost is what one item costs you to buy or make.
A margin must be below 100%.
3. Discount (optional)
See what a sale or discount does to your profit on each item.
Profit, margin and markup
After the discount
Profit here is gross profit on each item, before rent, salaries, utilities and other running costs.
Running a trade business?
Traders Pro by Software Craft manages sales and purchases, customer records and ledger reports for trade businesses.
How the calculation works
- Profit = selling price − cost.
- Margin = profit ÷ selling price. Markup = profit ÷ cost.
- Price for a target margin = cost ÷ (1 − margin). Price for a target markup = cost × (1 + markup).
- After a discount: new price = price × (1 − discount). To earn the same total profit, you need to sell old profit ÷ new profit times as many items.
Margin and markup are not the same
The same profit gives a smaller margin than markup, because margin is measured against the higher selling price. Mixing them up is a common way to underprice:
| Markup | Margin |
|---|---|
| 20% | 16.67% |
| 25% | 20% |
| 50% | 33.33% |
| 100% | 50% |
Discounts eat into profit quickly
A discount comes off the price, but your cost stays the same, so the whole discount comes out of your profit. Check the extra sales you would need before you run a sale.
Frequently asked questions
What is the difference between margin and markup?
Both compare profit with a price, but against different bases. Margin is profit as a share of the selling price. Markup is profit as a share of the cost. An item that costs Rs 800 and sells for Rs 1,000 has a profit of Rs 200: a 20% margin and a 25% markup.
How do I find the selling price for a target margin?
Divide the cost by (1 − margin). For a 25% margin on a Rs 750 cost: Rs 750 ÷ 0.75 = Rs 1,000. For a markup, multiply instead: Rs 750 × 1.25 = Rs 937.50 for a 25% markup.
What does a discount do to my profit?
A discount comes straight out of your profit, so profit falls faster than the price. On a Rs 1,000 item that costs Rs 800, a 10% discount cuts the price to Rs 900 but halves the profit from Rs 200 to Rs 100, so you would need to sell twice as many items to earn the same profit.
Should I enter prices with or without sales tax?
Without. Sales tax is collected for the government and is not your profit. Use our Sales Tax Calculator to remove tax from a tax-inclusive price first.
Is anything I type stored?
No. The calculator runs in your browser and does not save or send your prices.
Estimate only. The results depend on the costs and prices you enter. They show gross profit per item and do not include rent, salaries, utilities, delivery or other running costs.
Know your profit on every sale
Traders Pro by Software Craft manages sales and purchases, customer records and ledger reports for trade businesses.
