Is the product margin in Tiram markup on cost or margin on revenue?

Markup on cost: profit divided by what the item cost you. Buy at ₹100 and sell at ₹130 and the product shows 30.0%.

How do I calculate margin when my price already includes GST?

Take the tax out first: price × 100 ÷ (100 + rate). A ₹118 price at 18% is ₹100 of revenue, and the margin is worked out on that ₹100 against your cost. Tiram does this for you whenever a product is marked tax-inclusive.

Why does my P&L show a lower margin percentage than the product screen?

Because it divides by revenue rather than cost. The same ₹100 → ₹130 sale is 30.0% as markup on cost and 23.1% as a share of revenue. Both describe the same ₹30 of profit.

Why is the margin blank on some products?

There is no purchase price on them, or it is zero. Markup on a cost of nothing is undefined, so Tiram leaves the figure empty instead of printing a meaningless number.

Can I sort my products by profitability?

Yes — the products list sorts by the same margin figure it displays, so the top of the list really is what earns most per rupee of cost.

Does a discount at the counter change the margin shown?

Not the badge, which reflects your price list. The realised average in product insights does account for it, along with the actual cost of the goods sold.

Reference

What the profit margin on a product actually means

The short answer

The Profit margin Tiram shows against a product is markup on cost: profit as a percentage of what the item cost you. Buy at ₹100, sell at ₹130, and that reads 30.0% — the way a shopkeeper prices. If the selling price is tax-inclusive, GST is stripped out before the sum, because the tax was never yours to keep. The P&L report takes the other view and divides by revenue, so the same sale is 23.1% there. Neither number is wrong; they answer different questions.

Which number appears where

Two denominators run through the product, deliberately. Once you know which screen uses which, the figures stop looking like they disagree.

Every surface that shows a margin percentage, and what it divides profit by.
Where you see it	What it divides by	What it answers
Product form badge	Cost (markup on cost)	"If I sell at this price, what am I adding on cost?" — the pricing decision, shown live as you type the price.
Products list column and sort	Cost (markup on cost)	"Which items earn me the most per rupee spent?" Sorting uses the same figure the column prints, GST-stripping included.
Variant builder	Cost (markup on cost)	The same question per size or colour, since a variant can carry its own prices.
Dashboard tile — Profit margin (MTD)	Cost (markup on cost)	"Across everything I sold this month, what did I add on cost?" Uses the goods' real cost, not the price list.
Product insights — realised average	Cost (markup on cost)	"What did I actually get, after discounts and price changes?" Computed from invoice history rather than the price list.
P&L report — gross margin %	Revenue	"Of every ₹100 I billed, how much survived the cost of goods?" The accountant's view, and the one a lender or CA expects.
P&L report — net margin %	Revenue	The same share-of-revenue view after operating expenses and net GST.

The formulas, spelled out

Both are simple arithmetic. The only subtlety is which price goes into them.

Markup on cost: (price − cost) ÷ costCost ₹100, price ₹130 → 30.0%. This is the product-level Profit margin figure.
Share of revenue: (price − cost) ÷ priceThe same ₹100 → ₹130 sale reads 23.1%. This is the P&L's gross margin %.
Tax-inclusive price: price × 100 ÷ (100 + rate)A ₹118 price at 18% GST is ₹100 of revenue. The margin is worked out on the ₹100.
Shown to: One decimalBoth the badge and the list round to one decimal, and both round the same way, so they never differ by a stray 0.1.
No cost basis: No percentageWith a missing or zero purchase price there is nothing to mark up, so the figure is blank rather than a misleading 100%.
Current vs realised: Price list vs invoicesThe badge uses the prices on the product today; the realised average uses what customers were actually charged and what the goods actually cost.

Rules worth knowing before you price

These are the choices behind the number, and each one changes what it means.

GST is never counted as profit: If a product's selling price includes tax, Tiram removes the tax component before comparing with cost. A ₹118 price at 18% is treated as ₹100 of revenue, because the ₹18 is collected on the government's behalf and passes straight through you.
One formula on every screen: The product form, the variant builder, the products list and its sort order all compute margin the same way, from a single shared definition on each side of the API. A badge that said 30% next to a list column that said 23% would make the whole number untrustworthy.
Sorting matches the column: Ordering the products list by margin ranks by the exact figure displayed. A cheaper revenue-based sort would misplace tax-inclusive products, which keep their GST in that formula but shed it in the real markup.
Each variant can have its own margin: A variant with its own purchase and selling price gets its own markup; one left blank inherits the parent product's prices, and therefore the parent's margin.
The realised figure is the honest one: The badge shows what your price list implies. Product insights shows what actually happened — after the discount you gave at the counter and the cost the goods really carried in your FIFO layers. When the two diverge, the second one is the truth.

Three places this trips people up

Each of these has cost a shop real money in someone's spreadsheet.

Margin and markup are the same number.
They share a numerator and differ in the denominator — cost for markup, revenue for margin. A 50% markup is a 33.3% share of revenue. Tiram labels the product figure Profit margin but computes markup on cost, because that is how pricing is actually done at the counter: you add a percentage on what you paid.
A tax-inclusive price of ₹118 gives me a bigger margin than an exclusive price of ₹100.
It doesn't — they are the same sale. Tiram strips the GST first, so both read identically against the same cost. Any tool that leaves the tax in overstates your margin by the tax rate.
The dashboard tile and the P&L report should agree.
They cannot, and both are right. The tile divides by cost; the P&L divides by revenue. If you need one number for a lender or your CA, quote the P&L's gross margin — that is the convention they read.

Which plan includes margin figures

The product-level margin badge, the products list margin column and its sort, and the variant-level figure are on every plan — Silver, Gold and Platinum — as is today's sales on the dashboard.

The two deeper surfaces are tiered: the P&L report (with gross and net margin %) and product/customer performance scorecards are Gold and above. Cloud and the Windows/Mac desktop app are gated identically.

FAQs

Is the product margin in Tiram markup on cost or margin on revenue?: Markup on cost: profit divided by what the item cost you. Buy at ₹100 and sell at ₹130 and the product shows 30.0%.
How do I calculate margin when my price already includes GST?: Take the tax out first: price × 100 ÷ (100 + rate). A ₹118 price at 18% is ₹100 of revenue, and the margin is worked out on that ₹100 against your cost. Tiram does this for you whenever a product is marked tax-inclusive.
Why does my P&L show a lower margin percentage than the product screen?: Because it divides by revenue rather than cost. The same ₹100 → ₹130 sale is 30.0% as markup on cost and 23.1% as a share of revenue. Both describe the same ₹30 of profit.
Why is the margin blank on some products?: There is no purchase price on them, or it is zero. Markup on a cost of nothing is undefined, so Tiram leaves the figure empty instead of printing a meaningless number.
Can I sort my products by profitability?: Yes — the products list sorts by the same margin figure it displays, so the top of the list really is what earns most per rupee of cost.
Does a discount at the counter change the margin shown?: Not the badge, which reflects your price list. The realised average in product insights does account for it, along with the actual cost of the goods sold.