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| Total Revenue | PKR 15,000 |
| Total Cost | PKR 10,000 |
| Additional Expenses | PKR 0 |
| Net Profit / Loss | PKR 5,000 |
Whether you run a small shop in Lahore or manage an e-commerce store, understanding your profit margins is essential for healthy business decisions. This calculator gives you three key metrics: Net Profit, Profit Margin (profit as a % of selling price), and Markup (profit as a % of cost price).
Enter your cost price, selling price, quantity, and any additional expenses (shipping, packaging, commissions). The calculator instantly computes all three metrics so you know whether your pricing is profitable and by how much.
Net profit ÷ selling price × 100 — used by retailers globally
Net profit ÷ cost price × 100 — useful for pricing products
Calculate profit for any quantity with added expenses
Profit Margin = (Profit ÷ Selling Price) × 100. Markup = (Profit ÷ Cost Price) × 100. They sound similar but give different numbers. If you buy at PKR 100 and sell at PKR 150, your markup is 50% but your profit margin is 33.3%. Retailers typically think in markup; investors and analysts use margin. Knowing the difference prevents serious pricing mistakes.
It varies significantly by industry. In Pakistan: Grocery/FMCG retail: 5–15% margin | Clothing/apparel: 30–50% | Restaurant/food: 15–30% | Electronics retail: 5–12% | Manufacturing: 10–20% | Services/consulting: 40–70%. If your margin is below the industry average, you are either underpricing, overbuying, or missing hidden costs. Use this calculator to find your exact numbers before comparing.
Use the formula: Net Profit = (Selling Price × Quantity) − (Cost Price × Quantity) − Additional Expenses. Additional expenses include transport, packaging, shop rent allocation, and employee wages for that product. Many small traders in Pakistan forget to include transport and packaging costs, which significantly reduces their actual profit. Enter all these in the 'Additional Expenses' field for an accurate result.
Beyond the direct cost price, include: Transport/delivery costs to bring goods to your location | Packaging (bags, boxes, wrapping) | Storage costs if applicable | Agent or broker commission | Customs duty or import charges for imported goods | Wastage allowance for perishable items. Many small businesses in Pakistan underestimate costs and wonder why their bank balance doesn't match their expected profit — these hidden costs are usually the reason.
Revenue is the total amount you earn from sales. Profit is revenue minus all costs (what you actually keep). Cash flow is actual money moving in and out — you can be profitable on paper but cash-flow negative if customers haven't paid yet. In Pakistan's business environment where credit sales are common, many profitable businesses face cash crunches. Always track all three separately.
Yes. For gold trading, enter your purchase price per tola, selling price per tola, and quantity in tolas. For currency exchange or hawala-related profit calculation, enter the PKR buying and selling rates as cost and selling price. The profit margin and markup calculations work the same way regardless of the product. Just ensure you include all transaction costs (bank charges, broker fees, spread) in the Additional Expenses field.
For retail businesses in Pakistan, target profit margins vary by sector: Grocery / FMCG: 8–15%; Clothing and textiles: 25–40%; Electronics: 5–12%; Pharmaceuticals: 15–25%; Restaurants: 10–20%. Online businesses often achieve 20–35% margins. Your net margin after all expenses (rent, salaries, utilities, taxes) should be your real benchmark — not just the gross margin on each product.