Profit Calculator
Calculate your profit, profit margin, and markup instantly. Enter your revenue and cost to see how much profit you're making on each sale. Perfect for business owners, sales professionals, and anyone looking to understand their profitability.
What Is Profit?
Profit is the financial gain realized when revenue exceeds the total costs associated with producing and selling goods or services. It is the primary goal of most businesses and a key indicator of financial health.
This calculator measures profit at multiple levels:
- Gross Profit: Revenue minus Cost of Goods Sold (COGS).
- Net Profit: Revenue minus all costs (COGS + Operating Expenses).
- Profit Margin: Gross profit expressed as a percentage of revenue.
- Markup: The percentage added to the cost price to determine the selling price.
How Does the Profit Calculator Work?
The calculator uses standard financial formulas:
Gross Profit = Revenue − Cost
Profit Margin = (Gross Profit ÷ Revenue) × 100
Markup = (Gross Profit ÷ Cost) × 100
Profit per Unit = Gross Profit ÷ Units Sold
Net Profit = Gross Profit − Operating Expenses
Net Profit Margin = (Net Profit ÷ Revenue) × 100
Example: A product costs $80 and sells for $100:
- Gross Profit = $100 − $80 = $20
- Profit Margin = ($20 ÷ $100) × 100 = 20%
- Markup = ($20 ÷ $80) × 100 = 25%
Why Use This Profit Calculator?
- Instant Results: See your profit, margin, and markup with one click.
- Per-Unit Analysis: Understand profitability at the unit level.
- Net Profit Calculation: Include operating expenses for a complete picture.
- Visual Breakdown: A chart shows the relationship between revenue, cost, and profit.
- Free & Private: No registration, no data storage.
Key Profit Metrics Explained
- Gross Profit: Shows how efficiently you produce goods. A higher gross profit means better production efficiency.
- Net Profit: The "bottom line" — what's left after all expenses. This is what you actually keep.
- Profit Margin: A percentage that shows how much profit you make for every dollar of revenue.
- Markup: The percentage you add to the cost price to set the selling price.
❓ Profit Calculator FAQ
What is the difference between gross profit and net profit?
Gross profit is revenue minus the cost of goods sold (COGS). Net profit is revenue minus all costs, including COGS, operating expenses, taxes, and interest. Net profit is the "bottom line" — what you actually keep.
What is profit margin?
Profit margin is the percentage of revenue that remains as profit. It shows how much profit you make for every dollar of revenue. A higher margin indicates better profitability.
What is the difference between profit margin and markup?
Profit margin is calculated as profit divided by revenue (selling price). Markup is calculated as profit divided by cost. For example, a product that costs $80 and sells for $100 has a 20% margin ($20/$100) and a 25% markup ($20/$80).
What is a good profit margin?
Good profit margins vary by industry. Retail typically has 2-5% net margins, while software companies can have 20-30% or more. A good margin depends on your industry, business model, and competition.
How do I calculate profit per unit?
Profit per unit = (Revenue − Cost) ÷ Units Sold. For example, if you sell 10 units at $100 each with a cost of $80 each, your total profit is $200, and profit per unit is $20.
How does the calculator handle operating expenses?
When you enter operating expenses in the advanced options, the calculator subtracts them from gross profit to calculate net profit and net profit margin.
What is Cost of Goods Sold (COGS)?
COGS is the direct cost of producing the goods sold by a company. This includes the cost of materials and labor directly used to create the product. It does not include indirect expenses like marketing or administrative costs.
What are operating expenses?
Operating expenses (OPEX) are the costs of running a business that are not directly tied to production. This includes rent, utilities, marketing, salaries, and administrative costs.
How do I improve my profit margin?
You can improve profit margins by increasing prices (if demand allows), reducing costs (COGS or operating expenses), improving operational efficiency, or increasing sales volume.
What is the difference between revenue and profit?
Revenue is the total amount of money received from sales. Profit is what remains after subtracting all costs from revenue. You can have high revenue but low profit if costs are high.
How does this calculator handle taxes?
This calculator does not include taxes. For after-tax profit calculations, use our Income Tax Calculator or Tax Calculator.
What is the break-even point?
The break-even point is the number of units you need to sell to cover all your costs — both fixed and variable. At break-even, you make zero profit but also zero loss. This is different from profit, which measures per-unit profitability.
Can I use this calculator for services?
Yes. For services, "cost" would be the cost of delivering the service (labor, materials, etc.), and "revenue" would be the price you charge for the service.
How accurate is this profit calculator?
This calculator provides accurate results based on standard financial formulas. However, actual business performance may vary due to factors like overhead costs, taxes, and other expenses not included in this calculation.
How do I calculate my profit margin if I have multiple products?
For multiple products, calculate the total revenue and total cost across all products, then apply the same formulas. This calculator works with aggregate revenue and cost values.
What is the difference between profit and cash flow?
Profit is the financial gain after deducting costs. Cash flow is the actual movement of money in and out of your business. A business can be profitable but have negative cash flow if revenue is tied up in accounts receivable or inventory.