Profit Margin Calculation for Retail – Simple Formula

Understanding profit margin helps you price correctly and know which items make money.

Basic Formula

Profit = Selling Price − Cost Price

Margin % = (Profit ÷ Selling Price) × 100

Markup % = (Profit ÷ Cost Price) × 100

Example

Cost = ₹80, Sell = ₹100
Profit = ₹20
Margin = 20%
Markup = 25%

For Your Shop

Track cost and selling price per item. Reports in Stockkeeper help you see margins by product and category.

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