diff --git a/erpnext/accounts/doctype/pricing_rule/test_pricing_rule.py b/erpnext/accounts/doctype/pricing_rule/test_pricing_rule.py
index 9787fda86d3e..7b73fca7bf94 100644
--- a/erpnext/accounts/doctype/pricing_rule/test_pricing_rule.py
+++ b/erpnext/accounts/doctype/pricing_rule/test_pricing_rule.py
@@ -375,6 +375,44 @@ def test_pricing_rule_with_margin_and_discount_amount(self):
 		self.assertEqual(item.discount_amount, 110)
 		self.assertEqual(item.rate, 990)
 
+	def test_pricing_rule_with_multiple_margins(self):
+		frappe.delete_doc_if_exists("Pricing Rule", "_Test Pricing Rule")
+		make_pricing_rule(
+			selling=1,
+			margin_type="Percentage",
+			margin_rate_or_amount=10,
+			rate_or_discount="Discount Amount",
+			apply_multiple_pricing_rules=1,
+			discount_amount=0,
+		)
+		make_pricing_rule(
+			selling=1,
+			margin_type="Percentage",
+			margin_rate_or_amount=5,
+			rate_or_discount="Discount Amount",
+			discount_amount=0,
+			apply_multiple_pricing_rules=1,
+		)
+		make_pricing_rule(
+			selling=1,
+			margin_type="Amount",
+			margin_rate_or_amount=100,
+			rate_or_discount="Discount Amount",
+			discount_amount=0,
+			apply_multiple_pricing_rules=1,
+		)
+
+		si = create_sales_invoice(do_not_save=True)
+		si.items[0].price_list_rate = 1000
+		si.payment_schedule = []
+		si.insert(ignore_permissions=True)
+
+		item = si.items[0]
+		self.assertEqual(item.margin_type, "Amount")
+		self.assertEqual(item.margin_rate_or_amount, 250)
+		self.assertEqual(item.rate_with_margin, 1250)
+		self.assertEqual(item.rate, 1250)
+
 	def test_pricing_rule_for_product_discount_on_same_item(self):
 		frappe.delete_doc_if_exists("Pricing Rule", "_Test Pricing Rule")
 		test_record = {
diff --git a/erpnext/controllers/taxes_and_totals.py b/erpnext/controllers/taxes_and_totals.py
index ca0b037ea5b0..3a980d316ec6 100644
--- a/erpnext/controllers/taxes_and_totals.py
+++ b/erpnext/controllers/taxes_and_totals.py
@@ -962,19 +962,46 @@ def calculate_margin(self, item):
 		if item.price_list_rate:
 			if item.pricing_rules and not self.doc.ignore_pricing_rule:
 				has_margin = False
-				for d in get_applied_pricing_rules(item.pricing_rules):
-					pricing_rule = frappe.get_cached_doc("Pricing Rule", d)
 
-					if pricing_rule.margin_rate_or_amount and (
-						(
-							pricing_rule.currency == self.doc.currency
-							and pricing_rule.margin_type in ["Amount", "Percentage"]
-						)
-						or pricing_rule.margin_type == "Percentage"
-					):
-						item.margin_type = pricing_rule.margin_type
-						item.margin_rate_or_amount = pricing_rule.margin_rate_or_amount
-						has_margin = True
+				applied_pricing_rules = get_applied_pricing_rules(item.pricing_rules)
+
+				# If only one pricing rule is applied
+				if len(applied_pricing_rules) == 1:
+					for d in applied_pricing_rules:
+						pricing_rule = frappe.get_cached_doc("Pricing Rule", d)
+
+						if pricing_rule.margin_rate_or_amount and (
+							(
+								pricing_rule.currency == self.doc.currency
+								and pricing_rule.margin_type in ["Amount", "Percentage"]
+							)
+							or pricing_rule.margin_type == "Percentage"
+						):
+							item.margin_type = pricing_rule.margin_type
+							item.margin_rate_or_amount = pricing_rule.margin_rate_or_amount
+							has_margin = True
+
+				# If multiple pricing rules are applied
+				if len(applied_pricing_rules) > 1:
+					item.margin_rate_or_amount = 0
+					for d in applied_pricing_rules:
+						pricing_rule = frappe.get_cached_doc("Pricing Rule", d)
+
+						if pricing_rule.margin_rate_or_amount:
+							if pricing_rule.margin_type == "Percentage":
+								item.margin_type = "Amount"
+								item.margin_rate_or_amount += item.price_list_rate * (
+									pricing_rule.margin_rate_or_amount / 100
+								)
+								has_margin = True
+
+							elif (
+								pricing_rule.margin_type == "Amount"
+								and pricing_rule.currency == self.doc.currency
+							):
+								item.margin_type = "Amount"
+								item.margin_rate_or_amount += pricing_rule.margin_rate_or_amount
+								has_margin = True
 
 				if not has_margin:
 					item.margin_type = None