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MARGIN

Margin Calculator with GST for Retailers

Calculate profit, margin and markup from GST-inclusive buying and selling prices, with or without input tax credit.

Item
GST rate
Do you claim GST input credit?
Assumptions used VIEW ▾

With input credit, the GST you pay on purchase is recovered and the GST you collect on sale is paid to the government, so profit is measured on prices excluding GST: price ÷ (1 + GST rate). Margin = profit ÷ selling price; markup = profit ÷ cost. Composition-scheme dealers pay tax on turnover differently; ask your CA.

MARGIN

25.0%

Profit per unitexcluding GST
₹119
Markup on cost
33.3%
Cost excl. GST
₹355.93
Selling excl. GST
₹474.58
Margin25.0%

How it’s calculated

Margin = (selling − cost) ÷ selling, using prices excluding GST

Example: Buy ₹420, sell ₹560 at 18% GST: ₹355.93 → ₹474.58, margin 25%.

Questions

What is the difference between margin and markup?+

Margin is profit as a share of the selling price; markup is profit as a share of cost. A 25% margin is a 33.3% markup.

Estimates for planning, based on the assumptions shown. They are not a guarantee of quantities or professional engineering advice; check critical work with a qualified professional.