A sale of PKR 1,000 with PKR 600 of included cost leaves PKR 400. That is a 40% margin because the profit is divided by revenue. It is not a 40% markup on cost.
The Whatson Profit Margin Calculator makes those two denominators visible. Its result describes the cost you enter, so deciding what belongs in that cost is the first useful task.
Decide which profit you are measuring
If the cost field contains only the supplier product cost, the result is a product level comparison. Adding packaging, delivery, selling fees and other relevant expenses produces a different included cost and a different profit.
The calculator does not discover those expenses from your shop. Keep a note of the cost scope instead of labelling every result complete business profit.
The PKR 1,000 sale example
Enter a selling price of 1,000 and included cost of 600. The checked results are PKR 400 profit, 40% margin and 66.67% markup.
| Measure | Calculation |
|---|---|
| Profit | 1,000 − 600 = PKR 400 |
| Margin | 400 ÷ 1,000 × 100 = 40% |
| Markup | 400 ÷ 600 × 100 = 66.67% |
These are illustrative amounts, not a suggested Pakistan selling price or a current supplier quote.
A loss should stay visible
Change the included cost to PKR 1,200 while leaving revenue at PKR 1,000. The checked profit becomes negative PKR 200 and margin becomes negative 20%. The calculator does not clamp that result to zero.
A zero cost also needs care. Profit would equal revenue under that entry, but markup would have no valid denominator. The tool omits that undefined markup rather than emitting an infinite percentage.
Use another worksheet when the question changes
Markup Calculator builds a selling price from a chosen markup. Target Selling Price Calculator instead solves a price that leaves a target margin after separate order costs and sales based fees.
For a marketplace payout, Seller Settlement Reconciliation Calculator keeps expenses, withholding and reserves in separate lines. Cash received from the platform is not automatically the same number as profit.
The distinction between margin and markup is also discussed in Shopify’s pricing calculator. Here, save your original revenue and cost scope with the result so that comparisons between products use the same basis.