Profit Margin & Markup Calculator

Set prices with confidence. Get the selling price, profit, margin and markup in one place — plus the real cost of running a discount.

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Profit Margin & Markup Calculator

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I want a…
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Selling price

—

Profit / unit—
Margin—
Markup—

Markup ↔ margin cheat sheet

Markup= MarginPrice
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Results are estimates for planning. Rules and rates change — confirm with NBR, your bank or a professional before filing or paying.

Calculated with Eleven POS free business tools — https://elevenpos.online/en/tools/profit-margin-calculator

Guide

Margin vs markup — the mistake that eats profit

Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. They are not the same.

  • Cost ৳100, price ৳125 → profit ৳25 → markup 25%, but margin 20%.
  • If you want a 25% margin, the price must be ৳133.33, not ৳125.

Formulas

  • Price from margin: Price = Cost ÷ (1 − Margin%)
  • Price from markup: Price = Cost × (1 + Markup%)
  • Margin = (Price − Cost) ÷ Price; Markup = (Price − Cost) ÷ Cost

The real cost of a discount

A 10% discount on a product with a 25% margin cuts your profit per unit by 40%. To earn the same total profit, you must sell 67% more units. Use the discount tab before you run a sale.

FAQ

Frequently asked questions

What is a good profit margin for a retail shop in Bangladesh?
It depends on the category. Grocery often runs on 5–15% gross margin, while fashion, cosmetics and accessories commonly run on 30–60%. Compare against your rent, salaries and other fixed costs, not just other shops.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup). A 50% markup equals a 33.3% margin.
Should I include VAT in the cost?
If you can claim input VAT back, use the cost excluding VAT. If you cannot (for example under turnover tax), include it.

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