Retail Profit Margin & Markup Calculator
Calculate your exact gross profit in Rupees, true profit margin percentage, and markup percentage. Compute selling prices from desired margin targets and account for GST slabs with zero guesswork.
Per unit sold (Profit)
Margin vs Markup: The mistake that costs Indian retailers lakhs
Many shopkeepers buy an item for ₹100, add 20% (₹20) to sell at ₹120, and believe they have a 20% profit margin. In reality, their profit margin is only 16.6% (₹20 ÷ ₹120).
- Markup is the percentage added to your cost price:
(Profit ÷ Cost) × 100. - Profit Margin is the percentage of your total sale price that you keep:
(Profit ÷ Sale Price) × 100.
Track live margins on every item with Karobari
Enter your wholesale purchase rate in Stock, and Karobari computes margins in real time on every counter sale and bill.
Retail Margin & Markup Pricing FAQs
What is the difference between Margin and Markup in retail?
Markup is the percentage added to your purchase cost price (CP) to reach the selling price. Margin is the percentage of your total selling price (SP) that remains as profit after subtracting the cost. For example, buying at ₹100 and selling at ₹125 is a 25% Markup, but only a 20% Profit Margin.
How do I calculate Selling Price from a Desired Profit Margin %?
Use the formula: Selling Price = Cost Price ÷ (1 - Desired Margin % ÷ 100). For example, if an item costs ₹80 and you want a 20% profit margin: ₹80 ÷ (1 - 0.20) = ₹80 ÷ 0.80 = ₹100 Selling Price. Your profit is ₹20.
How does GST impact my retail profit margin?
In India, retail selling prices (MRP) are usually customer-inclusive of GST. If you sell an item for ₹118 with 18% GST, your base selling price is ₹100, and ₹18 is collected for the government. If your cost price was ₹80, your real gross profit is ₹20 (20% margin on base), not ₹38.
Can the Karobari billing app track profit margins automatically?
Yes. When you enter your purchase rate and selling price for items in Stock, Karobari calculates your margin on every bill automatically. Real-time daily reports show your exact total gross earnings across cash, UPI, and udhaar.
Track live margins on every item with Karobari
Enter your wholesale purchase rate in Stock, and Karobari computes margins in real time on every counter sale and bill. 100% free forever.