Profit Margin Calculator

Calculate selling price, gross profit margin, and markup for dairy products.

₹
Total cost per unit (per litre, per kg, per pack) including all direct costs
₹
Your actual or target selling price to the customer
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
MarginMarkup
Formula(SP − CP) / SP × 100(SP − CP) / CP × 100
BaseSelling priceCost price
Same profit, different %20% margin25% markup

Both give the same rupee profit — the difference is just the denominator.

Industry Margins in Indian Dairy

ProductTypical Gross Margin
Pasteurized fluid milk (retail)8–15%
UHT milk15–22%
Curd / Dahi18–25%
Paneer20–30%
Ghee12–20%
Butter10–18%
SMP (industrial)5–12%
Ice cream30–45%

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