Profit Calculator
Calculate profit, revenue, margins, and markup for your business or investments
Calculate Profit
Cost to acquire or produce one unit
Price at which you sell one unit
Number of units to sell
Percentage discount applied to selling price
Please enter unit cost, selling price, and quantity to calculate profit.
Example: Metal Box Business
Scenario
Product: Metal boxes
Unit cost: $25 per box
Selling price: $33 per box
Quantity: 45 boxes
Calculation
Unit profit = $33 - $25 = $8 per box
Total revenue = $33 × 45 = $1,485
Total cost = $25 × 45 = $1,125
Total profit = $1,485 - $1,125 = $360
Profit margin = ($360 ÷ $1,485) × 100 = 24.2%
Profit Margin Benchmarks
Profit Optimization Tips
Reduce costs: Negotiate with suppliers or optimize operations
Increase prices: Test market acceptance of higher prices
Add value: Bundle products or offer premium versions
Volume discounts: Encourage larger purchases
Understanding Profit Calculations
What is Profit?
Profit is the financial gain realized when the revenue from selling products or services exceeds the costs incurred. It's the primary incentive behind most business transactions and a key measure of business success.
Types of Profit
- •Gross Profit: Revenue minus cost of goods sold (COGS)
- •Operating Profit: Gross profit minus operating expenses
- •Net Profit: Total revenue minus all expenses and taxes
Profit Formulas
Unit Profit = Selling Price - Unit Cost
Total Profit = Revenue - Total Cost
Profit Margin = (Profit ÷ Revenue) × 100
Key Metrics
- Profit Margin: Percentage of revenue that becomes profit
- Markup: Percentage increase over cost price
- ROI: Return on investment as a percentage
- Break-even: Point where total revenue equals total costs
Tip: Monitor your profit margins regularly to ensure business sustainability.