Profit Calculator
Work out your net profit and profit margin from revenue and total costs in seconds.
Profit Calculator
Enter your revenue and costs to calculate profit.
Profit Breakdown
What This Profit Calculator Shows
This tool calculates three related figures from the same two inputs. Profit is the straightforward dollar amount earned after subtracting cost from selling price. Profit margin expresses that same profit as a percentage of the selling price, useful for comparing profitability across products with very different price points. Markup expresses profit as a percentage of cost instead, a figure commonly used when setting retail pricing based on wholesale cost.
How to Use the Profit Calculator
Enter your product or service cost, representing what it actually costs you to produce or acquire the item being sold. Enter your selling price, representing what customers actually pay. Profit, profit margin, and markup all appear instantly once calculated, giving a complete financial picture of that specific transaction.
The Profit Formula This Calculator Applies
Profit is calculated simply as selling price minus cost. Profit margin is calculated as profit divided by selling price, multiplied by 100 to express it as a percentage. This calculator applies both formulas automatically the moment you enter your cost and price figures, removing any manual calculation step.
Pro Tip: A business generating impressive total revenue can still struggle financially if profit margins are too thin to cover overhead costs like rent, staff, and other operating expenses.
Profit = Revenue − Cost
Profit Margin (%) = (Profit ÷ Revenue) × 100
Markup (%) = (Profit ÷ Cost) × 100
Margin is based on revenue; Markup is based on cost — they measure different things.
Why Tracking Profit Matters Beyond Just Revenue
A business generating impressive total revenue can still struggle financially if profit margins are too thin to cover overhead costs like rent, staff, and other operating expenses. Tracking actual profit, rather than revenue alone, provides a far more accurate picture of genuine business health, and this calculator makes checking that figure for any individual product or transaction fast and straightforward.
Using This Calculator for Both Products and Services
This tool works identically well for a physical product with a clear wholesale cost and retail price, or for a service where cost represents your time, materials, and overhead allocated to delivering that specific service. Entering the appropriate cost and price figures for either scenario produces an accurate profit calculation regardless of what specifically is being sold.
Frequently Asked Questions
Subtract the total cost from the selling price, and the resulting figure is your profit, which this calculator computes instantly once both values are entered.
Profit is a straightforward dollar amount, while profit margin expresses that same profit as a percentage of the selling price, which makes comparing profitability across differently priced products easier.
Yes, enter the cost and price for any product or service, and the calculator produces an accurate profit figure regardless of what specifically is being sold.
If profit margins are too thin, the business may not generate enough actual profit to cover overhead costs like rent and staff, even while total revenue appears healthy on paper.
For net profit, include everything — cost of goods sold, overheads, salaries, and rent. If you only enter direct costs, you'll get gross profit instead.