Finance
Profit Margin Calculator — Dairy Product Selling Price
Calculate selling price, gross profit margin, and markup percentage for dairy products. Free online dairy finance calculator for plant managers and business owners.
Formula
((sellingPrice - costPrice) / sellingPrice) * 100
costPrice
Total Cost Price (₹)
sellingPrice
Selling Price (₹)
Worked Example
1
Given:
costPrice = 38
sellingPrice = 45
2
Apply the formula:
((sellingPrice - costPrice) / sellingPrice) * 100
3
Result:15.56 %15.56 %15.56 ₹
Profit Margin vs. Markup — What’s the Difference?
These two terms are often confused:
- Margin = Profit as a % of Selling Price
- Markup = Profit as a % of Cost Price
| Margin | Markup | |
|---|---|---|
| Formula | (SP − CP) / SP × 100 | (SP − CP) / CP × 100 |
| Base | Selling price | Cost price |
| Same profit, different % | 20% margin | 25% markup |
Both give the same rupee profit — the difference is just the denominator.
Industry Margins in Indian Dairy
| Product | Typical Gross Margin |
|---|---|
| Pasteurized fluid milk (retail) | 8–15% |
| UHT milk | 15–22% |
| Curd / Dahi | 18–25% |
| Paneer | 20–30% |
| Ghee | 12–20% |
| Butter | 10–18% |
| SMP (industrial) | 5–12% |
| Ice cream | 30–45% |
Gross margin = after raw milk and direct processing costs only; excludes overheads
Break-Even Selling Price
Minimum Selling Price = Total Cost / (1 − Desired Margin%/100)
If total cost is ₹38/litre and you want 15% margin: Minimum SP = 38 / (1 − 0.15) = ₹44.70/litre