Both describe the same profit, divided by different numbers. Mixing them up is one of the most common pricing errors in small businesses.
Margin = (Price − Cost) ÷ Price
Markup = (Price − Cost) ÷ Cost
Cost ₹80, price ₹100: profit ₹20, margin 20%, markup 25%.
| Markup | Margin |
|---|---|
| 20% | 16.7% |
| 25% | 20% |
| 33.3% | 25% |
| 50% | 33.3% |
| 100% | 50% |
Open the Profit Margin Calculator →
If you need a 30% margin on a ₹700 cost, price = 700 ÷ 0.7 = ₹1,000. Adding 30% markup instead gives ₹910 — a 23% margin, and ₹90 short on every unit.
At a 25% margin, a 10% discount cuts profit by 40%. Use the break-even calculator to see how much extra volume a discount must generate.
