MARGIN CALCULATOR
Visual guide to using profit margin calculator: Input costs, set desired margin percentage, and instantly see optimal selling prices for maximum profitability
Breakdown
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Frequently Asked Questions (FAQs) - Margin Calculator
1. What is profit margin and how is it calculated in Indian rupees?
Profit margin is the percentage of revenue that remains as profit after accounting for costs. It’s calculated as (Selling Price – Cost Price) / Selling Price × 100. For example, if you sell a product for ₹1,500 that costs ₹1,000 to produce, your profit margin is (₹1,500 – ₹1,000) / ₹1,500 × 100 = 33.33%.
2. What is the difference between margin and markup in Indian pricing?
Margin is profit percentage based on selling price, while markup is percentage added to cost price. A 50% markup on ₹1,000 product means selling at ₹1,500, resulting in 33.33% margin.
3. How to calculate selling price from cost and margin in rupees?
Use formula: Selling Price = Cost Price / (1 – Margin Percentage). For example, if cost is ₹800 and you want 40% margin: ₹800 / (1 – 0.40) = ₹1,333 selling price.
4. How to calculate cost price from revenue and margin percentage?
Use formula: Cost Price = Revenue × (1 – Margin Percentage). If revenue is ₹2,000 with 30% margin: ₹2,000 × (1 – 0.30) = ₹1,400 cost price.
5. What is a good profit margin for small businesses in India?
 In India, good margins vary by industry:
Retail: 20-30%
Manufacturing: 15-25%
Services: 25-40%
E-commerce: 10-20%
Restaurants: 10-15%
6. How to calculate GST with profit margin in India?
First calculate your pre-GST selling price, then add GST. For cost ₹500 with 25% margin: Selling price = ₹500 / 0.75 = ₹667. Add 18% GST: ₹667 × 1.18 = ₹787 final price.
7. How much margin should I keep for wholesale business in India?
Typical wholesale margins in India:
FMCG products: 10-15%
Electronics: 8-12%
Apparel: 20-30%
Industrial goods: 15-25%
8. What is the standard retail margin in Indian markets?
Standard retail margins in India:
Kirana stores: 15-20%
Supermarkets: 20-25%
Specialty stores: 30-40%
Online retail: 15-25%
9. How to calculate net profit margin for Indian companies?
Net Profit Margin = (Net Profit / Total Revenue) × 100. Net profit includes all expenses like salaries, rent, taxes. For example: Revenue ₹10,00,000, all expenses ₹8,00,000, net profit ₹2,00,000 = 20% net margin.
10. How to maintain margins during Indian festival seasons?
During festivals, maintain margins by:
Offering bundled products instead of discounts
Increasing volume with slight margin reduction
Using festive packaging with added value
Running limited-time premium products
11. What is typical restaurant profit margin in India?
Indian restaurant margins:
Fine dining: 15-20%
Quick service: 12-18%
Cloud kitchens: 20-25%
Street food: 30-40%
12. How to calculate break-even point for Indian startups?
Break-even Point = Fixed Costs / (Selling Price – Variable Cost). For example: Fixed costs ₹5,00,000, selling price ₹1,000, variable cost ₹600 = ₹5,00,000 / ₹400 = 1,250 units to break-even.
13. What is healthy inventory turnover ratio for Indian retailers?
 Good inventory turnover in India:
FMCG: 8-12 times yearly
Fashion: 4-6 times yearly
Electronics: 6-8 times yearly
Furniture: 2-4 times yearly