Profit Margin & Markup Calculator
Accurately price your inventory. Find your exact gross profit margin, markup percentage, and target retail selling price.
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Instant MathMargin & Markup Summary
Recommended Selling Price: Rs. 1,850
✓ Powered by Weighted Average Costing (WAC)
Average Margin & Markup Standards Across Major Hubs
Verified commercial margin ranges across wholesale and retail clusters in Pakistan.
| Commercial Hub & City | Industry Sector | Average Profit Margin (%) | Average Markup (%) |
|---|---|---|---|
| Shah Alam Market & Anarkali, Lahore | Apparel, Footwear & Fabrics | 45% – 60% | 80% – 150% |
| Jodia Bazaar, Karachi | FMCG & Wholesale Commodities | 6% – 14% | 8% – 18% |
| Hall Road Lahore / Saddar Karachi | Mobile Spares & Consumer Electronics | 20% – 35% | 25% – 55% |
| Raja Bazaar Rawalpindi / Karkhano Peshawar | Cosmetics & General Merchandise | 30% – 48% | 45% – 90% |
| I-9 Islamabad / Gujranwala Hub | Ceramic Tiles & Sanitaryware | 25% – 40% | 35% – 65% |
| Food Streets & Cafes Nationwide | Restaurants & Fast-Food Cafes | 55% – 72% | 120% – 250% |
The Expensive Mistake: Why 50% Markup is NEVER 50% Profit Margin
Many business owners mistakenly believe that adding a 50% markup on cost equals a 50% profit margin. In reality, selling an item costed at Rs. 100 for Rs. 150 gives you Rs. 50 profit on a Rs. 150 sale — which is precisely a 33.3% profit margin. If you subsequently offer a 20% festive store discount on the retail price, your profit shrinks down to just Rs. 20 (a meager 13.3% margin).
Profit Margin Formula
Measures what percentage of total top-line sales revenue is retained as gross profit.
Markup Percentage Formula
Measures how much percentage is added directly on top of the original purchase cost.