Retail Profit Margin & Markup Calculator
Calculate your exact gross profit, margin percentage, and markup on any item. Enter your purchase cost price and selling price with optional GST slabs to see your real counter earnings.
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.
Typical Indian retail profit margins by trade
Different counter types operate under different margin and turnover dynamics across India.
Kirana & Grocery
Packaged FMCG operates on 8–12%; loose staples, pulses, and dry fruits reach 15–22%. High inventory rotation.
Medical & Chemist
Branded prescription drugs average ~16–20%; generic formulations and OTC supplements earn 30–50% margins.
Cloth & Garments
Readymade apparel, sarees, and suiting require higher margins to absorb seasonal inventory holding costs.
Mobile Accessories
Tempered glass, cables, and cases carry high gross margins to balance low ticket values and staff labour.
Questions about margin and markup calculation
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 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.
What is a healthy profit margin for a kirana or grocery store?
Indian kirana and grocery stores typically operate on gross margins of 8% to 15% on FMCG packaged goods, and 15% to 25% on loose grains, pulses, and spices. Garments and fashion counters typically operate on 30% to 50% margins.
Can the Karobari billing app track profit margins automatically?
Yes. In Karobari, when you enter your purchase rate and selling price for items in Stock, the app calculates profit margin on every bill. Daily sales reports show your exact total gross earnings across cash, UPI, and udhaar.