How this calculation works
Use margin to see how much of each rupee of sales remains after the costs you include. Enter revenue and matching costs for one product, order batch or reporting period. A product-cost-only calculation is a gross margin; including operating overhead changes what the profit figure represents. Compare the same cost basis across periods before treating a higher percentage as an improvement.
Worked example
This example uses illustrative inputs. Your current result is shown above.
For ₹80,000 revenue and ₹60,000 matching costs, profit is ₹20,000. Margin is ₹20,000 ÷ ₹80,000 × 100 = 25%, and costs consume 75% of revenue. A 25% margin therefore leaves ₹25 per ₹100 of sales before any costs omitted from the input.
Assumptions and limits
- Revenue and costs cover the same sales and period, using a consistent treatment of recoverable taxes.
- The calculator subtracts only the entered costs; it does not infer salaries, returns, financing costs or income tax.
Questions people ask
Why is margin different from markup?
Margin divides profit by revenue; markup divides it by cost. Use Markup to compare both denominators for an individual selling price.
Can the margin be negative?
Yes. When costs exceed positive revenue, the result measures a loss as a share of revenue. Zero revenue cannot provide a meaningful percentage denominator.