💹 Profit Margin & Markup Calculator
Production-grade pricing calculator for Indian retail & e-commerce with GST integration
Input Parameters
₹1 - ₹100,000
Equivalent Markup: ~25.00%
Frequently Asked Questions
What is the difference between markup and margin?▼
Markup is profit as a percentage of cost price. Margin is profit as a percentage of selling price. For example: ₹100 cost with ₹30 profit = 30% markup (30/100 × 100) or 23% margin (30/130 × 100). Margin is always lower than markup for the same profit amount.
How does GST Inclusive pricing work in India?▼
In GST Inclusive pricing, the MRP shown includes the tax. If MRP is ₹1,180 with 18% GST, the government receives ₹180 while the seller keeps ₹1,000. This is common for retail goods with fixed MRPs. The seller cannot claim GST input credits, so the full tax erodes their profit margin.
What is MRP and how is embedded GST calculated?▼
Maximum Retail Price (MRP) is the price printed on packaging — what customers actually pay. When GST is inclusive, the embedded tax is calculated as: GST Amount = MRP ÷ (1 + GST Rate %) × GST Rate %. For ₹1,180 MRP with 18% GST: GST = 1,180 ÷ 1.18 × 0.18 = ₹180 (seller gets ₹1,000).
What is a healthy profit margin for Indian e-commerce?▼
Healthy margins vary by category: Electronics 5-15%, Clothing 25-50%, Food 15-25%, Software 70-90%. E-commerce platforms typically aim for 20-40% gross margins to cover logistics, returns, and operating costs. After accounting for expenses (payment gateway fees 2-3%, logistics 10-15%), net margin should be 5-15% for viability.
How do I set price to achieve a 20% margin with 18% GST?▼
For GST Exclusive: If you want 20% margin on ₹100 cost, use this calculator with Target Margin 20% and GST Exclusive 18%. Result: Sell at ₹1,250 pre-GST, customer pays ₹1,475 (includes ₹225 GST). For GST Inclusive (MRP model): If you want ₹1,180 MRP with ₹100 cost, use Price-Driven mode with MRP ₹1,180 and GST Inclusive. Your actual margin is 20% on the pre-tax amount (₹1,000).
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