Profit Margin & Markup Calculator

Calculate gross profit margin, markup percentage, and selling price including VAT and delivery costs.

1. Enter Your Cost Figures

Cost of Goods / Production Cost per Unit (৳) * Raw materials, wholesale purchase price, or direct unit labor.

Desired Markup Percentage (%) * Percentage added on top of your unit cost.

VAT / Tax Rate (%) Standard retail VAT in Bangladesh (leave 0 if exempt).

Estimated Packaging / Shipping Cost per Unit (৳) Packaging box, courier delivery fee, or protective wrap.

Recommended Retail Selling Price

৳785

Includes cost, markup, VAT & packaging

Gross Profit per Unit

৳200

Gross Margin

28.6%

Markup Applied

40.0%

Understanding Margin vs. Markup

Markup is the percentage added to the cost price: Markup = ((Selling Price - Cost) / Cost) * 100.
Margin is the percentage of the selling price that is profit: Margin = ((Selling Price - Cost) / Selling Price) * 100.

Many new business owners mistakenly confuse the two. A 50% markup yields a 33.3% gross margin. If your marketing, rent, and overheads exceed 33%, you lose money despite adding a "50% markup".

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