Profit Margin Calculator

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Profit Calculator – Gross & Net Profit

The Profit Calculator helps you calculate profit amount, profit margin, or markup based on the cost price and selling price of a product or service. It's useful for business owners, freelancers, retailers, and financial planners.

How to Use the Profit Calculator

Enter any two of the following values:

  • Cost Price (CP)
  • Selling Price (SP)
  • Profit Margin (optional, if calculating backward)

The tool will compute:

  • Profit or Loss Amount
  • Profit Margin %
  • Markup %

Profit Calculation Formulas

  • Profit = SP − CP
  • Profit Margin % = (Profit ÷ SP) × 100
  • Markup % = (Profit ÷ CP) × 100

Example

Cost Price: $100
Selling Price: $150
→ Profit = $150 − $100 = $50
→ Profit Margin = (50 ÷ 150) × 100 = 33.33%
→ Markup = (50 ÷ 100) × 100 = 50%

Common Use Cases

  • Small business product pricing
  • E-commerce store profit analysis
  • Wholesale and retail margin planning
  • Service-based pricing strategy
  • Freelancer rate and quote calculation

Why Use a Profit Calculator?

This calculator simplifies financial decision-making by showing how much profit you’re making, your business’s efficiency, and whether your pricing strategy is sustainable or not.

Frequently Asked Questions (FAQs)

What is the difference between profit margin and markup?

Profit margin is based on selling price, while markup is based on cost price. Both measure profitability differently.

What if my selling price is less than the cost price?

You’ll incur a loss, and the calculator will show a negative profit.

Can I calculate selling price from desired margin?

Yes, reverse calculations are possible by entering cost and margin.

Does this apply to services?

Yes, service providers can use it to set rates that ensure profitability.

Is VAT or tax included?

No, this tool calculates profit before tax. Include taxes separately if required.


Related tools: Discount Calculator, Percentage Calculator, Gst Calculator.