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Yield Analysis

Business Profit Calculator

Understand margins, markups, gross/net yields, and analyze pricing adjustments instantly.

Cost of Goods Sold (COGS) (₹) Purchase / Production cost
Selling Price / Revenue (₹) Sale amount
Operating Expenses (OPEX) (₹) Rent, salaries, ads, admin
Net Profit (Yield)
₹12,000.00

Net margin: 24%

40%
Margin
Gross Margin: 40.0%
Net Margin: 24.0%
Gross Profit
₹20,000.00
Markup %
66.67%
Gross Profit Margin (%)
40.00%

Margin vs Markup Explained

Understand standard accounting metrics to optimize product pricing.

What is Profit Margin?

Profit Margin is the ratio of profit relative to the **Selling Price**. It represents what percentage of your total sales revenue is retained as profit.

Gross Margin = (Selling Price - Cost) / Selling Price × 100
Net Margin = (Revenue - COGS - OPEX) / Revenue × 100

What is Markup?

Markup is the ratio of profit relative to the **Cost Price**. It represents by how much percentage you mark up the cost of an item to arrive at its final selling price. A 50% markup is equivalent to a 33.3% profit margin.

Markup Percentage = (Selling Price - Cost) / Cost × 100

Frequently Asked Questions

Gross Profit is simply your revenue minus the direct Cost of Goods Sold (COGS). Net Profit takes it a step further, subtracting all other operating expenses like rent, utilities, marketing, salaries, and interest charges. Net profit represents your true cash profit.

No, profit margin represents profit as a fraction of the selling price, which cannot exceed the selling price. However, **Markup** can easily go above 100%, 200%, or more (e.g. buying for ₹10 and selling for ₹30 is a 200% markup but a 66.7% margin).