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Pricing & Profitability

Profit Margin & Markup Calculator

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

1. Enter Your Cost Figures

Raw materials, wholesale purchase price, or direct unit labor.
Percentage added on top of your unit cost.
Standard retail VAT in Bangladesh (leave 0 if exempt).
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".

Want the Complete Operational System?

Calculators give quick answers, but scaling requires documented SOPs and automated tracking dashboards.