Profit Margin Calculator

Average net margin is 5-10% for retail, 15-25% for SaaS, 8-12% for BFSI, and 4-8% for manufacturing. FMCG consumer companies typically run 12-18% net margin; IT services 14-18%; e-commerce businesses run at sub-zero for years before profitability.

Markup = (Price - Cost) / Cost × 100. Margin = (Price - Cost) / Price × 100. Example: a product sold for ₹150 with cost ₹100 has a markup of 50% and a margin of 33%. Markup is helpful for retailers setting pricing; margin is the standard P&L metric.

Break-even price = (Fixed Costs + Variable Cost per Unit) / Units Sold × Variable Cost per Unit. Every unit above break-even adds to the margin. Calculator handles this with fixed-cost and units-sold inputs.

Retail gross margin = (Sale Price - Wholesale Cost) / Sale Price × 100. Indian retail typically runs 25-35% gross margin, but net margin after rental, salaries and inventory loss is closer to 5-8% — why scale and unit economics matter.

Operating margin = (Operating Income / Revenue) × 100. EBITDA margin adds back depreciation and amortisation to operating income. Both are commonly reported metrics — EBITDA margin better reflects cash flow, while operating margin is GAAP-mandated.

SaaS gross margin = (Subscription Revenue - Hosting Cost - Customer Support Cost - Sales Commissions) / Subscription Revenue × 100. Healthy SaaS gross margin is 70-80% (compared to 30-40% for retail). Calculator allows you to enter COGS components directly for accurate SaaS math.