How is GST calculated on a product?

For an exclusive price, GST = price × rate ÷ 100 and the customer pays price + GST. For an inclusive price, GST = price − price ÷ (1 + rate ÷ 100). This calculator supports both and removes GST from your revenue so margin and profit stay accurate.

What is break-even quantity?

Break-even quantity is the number of units you must sell to cover fixed operating expenses. It equals operating expenses divided by the gross profit per unit. Below that number you are running at a loss.

What is a good profit margin?

It varies by industry. Retail and grocery often run on 2–10% net margins, clothing and accessories 8–15%, and software or consulting 20% and above. What matters more is that your margin covers fixed costs and a margin of safety.

Profit Margin Calculator

Q: What is the difference between margin and markup?

Margin is gross profit as a percentage of the selling price. Markup is gross profit as a percentage of the cost. A product bought for 100 and sold for 150 has a 50% markup but only a 33.3% margin.

Price products with confidence. Enter your cost and selling price to get margin, markup, GST, true net profit, profit per unit and the units needed to break even.

Updated November 2026 · Results update live

Cost price / unit

Selling price / unit

₹300.00 per unit

Units sold

Operating expenses (shipping, packing, ads)

GST / VAT rate

Tax on profit (income tax)

Financial summary

Net profit

₹0 Net margin 0% · ₹0 per unit

Net profit (exact)

₹0

Gross margin

Markup

Revenue (net)

₹0

Cost of goods

₹0

Gross profit

₹0

GST / VAT amount

₹0

Tax on profit

₹0

Profit per unit

₹0

Break-even quantity

0 units

Cost structure

Where revenue goes

Markup → selling price guide

Based on your cost price

Selling price and resulting margin for common markups
Markup	Selling price	Resulting margin

Increase the cost price or markup above to update this table.Tax excluded

Margin vs. markup — the difference that costs money

Most pricing mistakes come from confusing these two percentages:

Margin % = (Selling price − Cost) ÷ Selling price × 100 Markup % = (Selling price − Cost) ÷ Cost × 100

Buy at ₹100 and sell at ₹150: the markup is 50%, but the margin is only 33.3%. If you target a 50% margin and apply a 50% markup, you lose a third of the profit you planned for.

GST handling

GST is collected on behalf of the government, not earned by you. This calculator removes GST from revenue before computing margin and profit, so your numbers reflect what you actually keep. Toggle the mode to tell it whether your selling price already includes GST.

Exclusive: GST is added on top of the selling price.
Inclusive: GST is extracted from the selling price (MRP style).

Break-even and fixed costs

Operating expenses — shipping, packing, ads, rent — are independent of the number of units. Break-even quantity = expenses ÷ gross profit per unit. Anything you sell beyond that is profit. This is why low-margin, high-volume products need extremely tight shipping and return costs.

Healthy margins by business type

Grocery / FMCG retail: 2–10% net.
Clothing & accessories: 8–15%.
Electronics e-commerce: 3–8%; watch for returns.
Services & software: 20%+.

Keep your actual GST filings and accountant's treatment separate: this tool estimates commercial profit, not your tax liability, which may also include input credit and reverse charge rules.

Profit and pricing FAQs

What is the difference between margin and markup?

Margin divides gross profit by the selling price; markup divides it by the cost. A ₹100 cost sold at ₹150 is a 50% markup but a 33.3% margin.

How do I find the selling price for a target margin?

Selling price = Cost ÷ (1 − target margin). For a 30% margin on a ₹500 cost: 500 ÷ 0.7 = ₹714.29. The markup table above shows the equivalent markups.

How does GST affect my real profit?

GST you collect is forwarded to the government. This calculator removes it from revenue, leaving net revenue for margin and profit. If you buy with GST and claim input credit, your effective cost is also lower than the gross cost.

What if my net profit drops below zero?

The calculator shows a loss in red and tells you the minimum price per unit needed to break even with your current expenses.

Does this work for services, not products?

Yes. Set units to 1 and use the cost price as your delivery cost, and operating expenses as your overheads for that period.

Disclaimer: This calculator provides commercial estimates for education and planning. It is not tax or accounting advice. GST treatment, input credit and income tax depend on your jurisdiction and business structure.