Profit Margin Calculator

Profit margin is the percentage of revenue that remains as profit after all costs are deducted. For Indian businesses, understanding profit margin is essential for pricing strategy, competitive analysis, and tax planning. The calculator shows gross margin (revenue minus cost of goods sold) and net margin (profit divided by revenue). A product with ₹100 cost sold at ₹150 generates a 50% gross margin but the net margin depends on operating expenses. For e-commerce sellers on platforms like Amazon and Flipkart, thin margins (5-15%) are common after accounting for platform fees, logistics, and discounts. Retailers might target 20-40% margins depending on category. Professional services often achieve higher margins (40-60%) with lower material costs. For startups planning profitability, understanding required margins is crucial for unit economics and cash flow forecasting. Investors and lenders scrutinize margins to assess business viability. This calculator helps quickly model different price points and cost scenarios to find breakeven and target profit levels.