Free tools / Profit margin calculator

Profit Margin Calculator

See what you really make on every sale after GST, packaging, shipping and marketplace commission. Or set the margin you want and get the right selling price.

✓ GST-aware✓ Marketplace commission✓ Margin & markup
What do you want to find?
₹

What you pay to make or buy it, excl. GST

₹

Packaging, shipping, ads per order

₹
%

Amazon, Flipkart, Swiggy… leave 0 if none

Profit per unit
₹0
Enter your cost and price

Profit margin formulas

Price excl. GST = Selling price ÷ (1 + GST%) (if your price includes GST) Profit = Price excl. GST − Cost − Other costs − Commission Margin % = Profit ÷ Price excl. GST × 100 Markup % = Profit ÷ (Cost + Other costs) × 100 Price for margin = Total cost ÷ (1 − Margin% − Commission%)

Margin vs markup

Markup on costEquals margin of
25%20%
50%33.3%
100% (double the cost)50%
200% (triple the cost)66.7%

Many sellers set a 50% markup and believe they have a 50% margin. They actually keep 33%, and less after commission and returns.

Why marketplace commission changes everything

Commission is charged on the selling price, not on your profit. A 20% commission on a product with a 30% margin wipes out two-thirds of your profit. Selling through your own website or WhatsApp keeps that money with you. That's why most growing brands move repeat customers to their own store.

Frequently asked questions

What is a good profit margin in India?

It depends on the industry. Grocery and FMCG retail often run at 5–15% net, restaurants at 10–20%, apparel and D2C brands at 40–60% gross, and services and software can exceed 60%.

Should I include GST in margin?

No. GST collected is not your income. This calculator removes GST from the selling price before working out margin.

What counts as "other costs"?

Anything you spend per unit sold: packaging, shipping, payment gateway fees (about 2%), ad spend per order and return losses.