Profit Margin & Selling Price Calculator – Free Online Tool for Businesses

🛒 Profit Margin & Selling Price Calculator – Set the Right Price for Your Business

Introduction

One of the biggest challenges for small shopkeepers, restaurant owners, and online sellers is deciding the right selling price.
Set it too low → you risk making losses.
Set it too high → customers may walk away.

That’s where our Profit Margin & Selling Price Calculator comes in.
This free tool helps you:

  • Calculate the best selling price.

  • Check your profit margin.

  • Factor in GST, discounts, and costs.

  • See how many units you need to sell to break even.

No confusing formulas — just simple answers for smarter business decisions.

What is a Profit Margin & Selling Price Calculator?

In simple words, this calculator helps you answer:

👉 “If my product costs me ₹X, how much should I sell it for to make Y% profit?”

It also tells you:

  • Your profit per item.

  • Your margin % and markup %.

  • The effect of discounts and taxes.

  • How long it will take to recover your startup costs.

Whether you run a kirana shop, food stall, boutique, or online store, this tool gives you clarity on pricing.

How to Use the Calculator – Step by Step

Here’s what you need to enter:

  1. Cost Price (₹) – how much you paid to buy or make the product.

  2. Desired Profit Margin (%) – how much of the selling price you want to keep as profit.

  3. OR Markup (%) – profit as a % of cost price (another way of pricing).

  4. GST / Tax (%) – government tax you must add to selling price.

  5. Discount (%) – any discount you want to offer customers.

  6. Fixed Costs (monthly) – rent, salaries, utilities, etc. (optional).

  7. Startup Costs – one-time investment (optional).

Hit Calculate → get instant results.

Understanding the Results

The calculator shows you:

  • Selling Price – how much to charge per unit.

  • Final Price (after discount & tax) – what your customer pays.

  • Profit per Unit – money you keep after all costs.

  • Profit Margin % – profit as % of selling price.

  • Markup % – profit as % of cost price.

  • Break-even Units – how many items you must sell per month to cover costs.

  • Months to Recoup Startup – how long it takes to recover initial investment.

 

Practical Examples

Example 1: Kirana Shop

  • Cost price of a biscuit pack = ₹8

  • Desired margin = 20%

  • No tax, no discount

Result:

  • Selling Price = ₹10

  • Profit = ₹2 per pack

  • Margin = 20%

  • Markup = 25%

 

Example 2: Restaurant Dish

  • Cost price = ₹100

  • Desired markup = 50%

  • GST = 5%

  • Discount = 10%

Result:

  • Selling Price = ₹150

  • Price after 5% GST = ₹157.50

  • Discounted Price = ₹141.75

  • Profit = ₹41.75 per dish

  • Net Margin ≈ 29.5%

 

Example 3: Online Seller

  • Cost price of T-shirt = ₹200

  • Desired margin = 40%

  • Discount = 15%

  • No GST

Result:

  • Selling Price = ₹333.33

  • Final Price (after discount) = ₹283.33

  • Profit = ₹83.33 per T-shirt

  • Margin = 29.4%

 

This tool helps you decide the right selling price for your product, check your profit, and see how many items you must sell to cover costs.
Here are the terms explained in simple language:

Input / Output
Meaning (in plain words)
Example
Cost Price
How much you pay to buy or make one item
You buy a biscuit pack for ₹8
Margin (%)
What part of the selling price you want to keep as profit
20% margin → earn ₹20 on a ₹100 sale
Markup (%)
Profit as a % of cost price (alternate method)
25% markup on ₹100 cost = ₹125 selling price
GST / Tax (%)
Government tax you must add to the price
5% GST on ₹100 = ₹105 final price
Discount (%)
How much price cut you give to customer
10% off on ₹100 = customer pays ₹90
Fixed Costs
Monthly expenses you pay (rent, salary, bills)
Rent ₹10,000 + salary ₹15,000
Startup Cost
One-time money you invest at the beginning
Shop deposit ₹50,000
Selling Price
How much you should charge per item
₹10 per biscuit pack
Profit per Unit
Money you actually earn on each sale (after discount, before GST)
₹2 profit on ₹10 sale
Break-even Units
How many items you must sell in a month to cover fixed costs
If costs = ₹20,000 and profit/unit = ₹2 → need 10,000 sales
Months to Recoup Startup
How many months until you recover your initial investment
Startup ₹50,000 / Monthly profit ₹10,000 = 5 months

👉 Try the calculator now and make sure every sale brings you closer to success.

If you’re looking for a modern, feature-rich, and trader-friendly platform, Dhan is easily one of the best choices available today. From zero account opening charges to advanced tools like native TradingView, options strategy builder, and free API access, Dhan is clearly built with the modern Indian trader in mind.

Whether you’re an intraday trader, an options strategist, or a long-term investor, Dhan offers the perfect blend of speed, simplicity, and smart technology — without burning a hole in your pocket.

Why wait? Open your Dhan account now and take control of your trading journey with confidence.

👉 Click here to get started with Dhan

Open a Free Dhan Trading & Demat Account

Dhan offers cutting-edge tools for fast, powerful, and informed trading:

  • ✅ Zero brokerage on delivery trades
  • ✅ Auto-detection of candlestick patterns on charts
  • ✅ Advanced Option Chain with Greeks, Max Pain, PCR & more
  • ✅ Pre-built & custom Option Strategy Builder (Free)
  • ✅ 20 Depth Market Data and Flash Trade execution
  • ✅ Margin Trading Facility (MTF) with 4X leverage (75%)
  • ✅ 3 Platforms: Mobile App, Web App & Dedicated Options App
  • ✅ ScanX Screener: stock insights, trends & news
  • ✅ Advanced orders: Trailing SL, Iceberg, Forever Orders
  • ✅ Instantly pledge 1,500+ stocks for options margin
  • ✅ Trade commodities: Gold, Silver, Crude, Natural Gas
  • ✅ Fundamental + Technical analysis across all platforms

No paperwork. Zero account opening charges. Setup in minutes.

 

Real Estate Capital Gains Calculator India – Calculate LTCG with Indexation & Save Tax

Mortgage Calculator With amortization schedule – Calculate EMI Interest in 1 Step

Home loan Calculator – check loan eligibility

Rent vs Buy Calculator – Which Is Better In 2025 Understand With Examples & Tips

Advanced Profit Margin Calculator | Free Online Tool for Cost, Markup & Revenue

TDS Calculator India (2025) – Calculate Tax Deducted at Source Online

GST Calculator India (2025) | Calculate CGST, SGST & IGST Online

FD vs RD Calculator (Fixed Deposit vs Recurring Deposit Returns)

Checkout monthly payout FD calculator – Find out how much you can get from FD every month? 

EPF Calculator India 2025 – Calculate Provident Fund & Interest Online

FIRE Calculator India (2025) – Financial Independence & Early Retirement Corpus Estimator

Stock Return Calculator India (2025) – Calculate Gains, CAGR & Dividends

Property ROI Calculator | Real Estate Investment Returns with Appreciation

Small Business Profitability Calculator – Free Online Tool for Revenue, Costs & Profit Analysis

 

📊 Example Test Cases for Profit Margin & Selling Price Calculator

Test Case
Inputs
Key Outputs
Takeaway
Case 1: Small shop, low margin
Cost = ₹100, Margin = 20%, Discount = 10%, GST = 5%, Units = 500, Fixed = ₹10,000, Startup = ₹20,000
SP before tax = ₹125, Final Price = ₹118.1, Profit/unit = ₹12.5, Margin = 11.1%, Monthly Net = –₹3,750, Break-even = 800 units, Recoup = ∞
Shows loss after fixed costs → not sustainable.
Case 2: Mid-scale product with markup
Cost = ₹50, Markup = 50%, GST = 18%, Units = 1000, Fixed = ₹15,000, Startup = ₹50,000
SP before tax = ₹75, Final Price = ₹88.5, Profit/unit = ₹25, Margin = 33.3%, Monthly Net = ₹10,000, Break-even = 600 units, Recoup = 5 months
Profitable setup with quick payback.
Case 3: High-value product, higher margin
Cost = ₹200, Margin = 35%, Discount = 5%, GST = 12%, Units = 800, Fixed = ₹60,000, Startup = ₹100,000
SP before tax = ₹307.7, Final Price = ₹327.4, Profit/unit = ₹92.3, Margin = 31.6%, Monthly Net = ₹13,846, Break-even = 651 units, Recoup = 8 months
Good profits, but higher fixed costs delay payback.

📌 Pro Tip for Users:

  • If your net profit after fixed costs is negative, your business model is not sustainable — either increase price, reduce costs, or sell more units.

  • Aim for a profit margin above 20% for healthy sustainability.

  • Always check months to recoup startup costs → if it’s too long, consider adjusting your pricing.

 

Pro Tips for Pricing Your Products

💡 Always calculate costs first – never guess your selling price.
💡 Know the difference between margin & markup – margin is % of selling price, markup is % of cost price.
💡 Don’t forget discounts & GST – they directly cut into your profit.
💡 Check competitor prices – make sure your price is competitive but still profitable.
💡 Adjust regularly – as raw materials and costs rise, so should your prices.

Benefits of Using This Calculator

✅ Avoid losses from underpricing
✅ Plan your business break-even point
✅ Decide discounts smartly without eating profits
✅ Save time — no manual math needed
✅ Beginner-friendly — anyone can use it

Frequently Asked Questions (FAQ)

Q1: What is the difference between margin and markup?
👉 Margin = Profit ÷ Selling Price. Markup = Profit ÷ Cost Price.

Q2: Can I add GST to the selling price?
👉 Yes, the calculator adds GST on top of your selling price automatically.

Q3: How do I know my break-even point?
👉 Enter your monthly fixed costs. The tool tells you how many units you must sell to cover them.

Q4: What if I give discounts?
👉 Just enter the discount % — the tool adjusts your selling price and profit.

Conclusion

Pricing is the backbone of every successful business.
With the Profit Margin & Selling Price Calculator, you can set prices confidently, understand your profits clearly, and plan your growth smartly.

If you’re looking for a modern, feature-rich, and trader-friendly platform, Dhan is easily one of the best choices available today. From zero account opening charges to advanced tools like native TradingView, options strategy builder, and free API access, Dhan is clearly built with the modern Indian trader in mind.

Whether you’re an intraday trader, an options strategist, or a long-term investor, Dhan offers the perfect blend of speed, simplicity, and smart technology — without burning a hole in your pocket.

Why wait? Open your Dhan account now and take control of your trading journey with confidence.

👉 Click here to get started with Dhan

Open a Free Dhan Trading & Demat Account

Dhan offers cutting-edge tools for fast, powerful, and informed trading:

  • ✅ Zero brokerage on delivery trades
  • ✅ Auto-detection of candlestick patterns on charts
  • ✅ Advanced Option Chain with Greeks, Max Pain, PCR & more
  • ✅ Pre-built & custom Option Strategy Builder (Free)
  • ✅ 20 Depth Market Data and Flash Trade execution
  • ✅ Margin Trading Facility (MTF) with 4X leverage (75%)
  • ✅ 3 Platforms: Mobile App, Web App & Dedicated Options App
  • ✅ ScanX Screener: stock insights, trends & news
  • ✅ Advanced orders: Trailing SL, Iceberg, Forever Orders
  • ✅ Instantly pledge 1,500+ stocks for options margin
  • ✅ Trade commodities: Gold, Silver, Crude, Natural Gas
  • ✅ Fundamental + Technical analysis across all platforms

No paperwork. Zero account opening charges. Setup in minutes.

If, you have liked the content please do share it with your friends or on social media, as sharing do bring the good karma. If you have any questions or feedback you can leave them in comment box below.

Commodity Trading in India: A Beginner’s Guide to Earning from Gold, Oil & More

🌟 4 Best Brokers for Trading in India (2025) – Dhan vs Upstox vs Zerodha vs Fyers

🏆 Best Demat & Trading Account in India (2025) – Dhan vs Upstox vs Zerodha vs Groww

 

Here is the list of things as a beginner you should know, if you are thinking for doing intraday trading.

A brief understanding of

How share market works?

How To Invest In Indian Stock Market – Explained With Examples For Beginners

Learn about the basics of candlestick chart patterns and how to use them for intraday trading and investing. You should also learn about the best moving averages to use for better trading result.

Checkout Mastering Intraday Trading: A Beginner’s Guide to Profitable Strategies in the Indian Stock Market

Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.

Disclaimer

This calculator is for educational purposes only. Actual profits may vary depending on market conditions, competition, and hidden costs. Always consult a financial advisor for major business decisions.

Leave a Reply