Profit and Loss Calculator: Cost Price, Selling Price and Margin
Learn how to calculate profit, loss, profit percentage, and the difference between markup and margin.
A Profit and Loss Calculator helps determine whether a sale earned a profit or resulted in a loss by comparing cost price and selling price.
Core Formulas
Profit = Selling Price тИТ Cost Price
Loss = Cost Price тИТ Selling Price, when selling price is lower than cost price.
Profit Percentage = Profit ├╖ Cost Price ├Ч 100
For example, if an item costs тВ╣800 and sells for тВ╣1,000, profit is тВ╣200 and profit percentage is 25% of cost price.
How to Use It
- Enter the cost price.
- Enter the selling price.
- Calculate the difference and percentage.
- Include relevant expenses if you want a more realistic business result.
Profit Percentage vs Profit Margin
Profit percentage often refers to profit divided by cost price. Profit margin usually means profit divided by selling revenue. With cost тВ╣800 and selling price тВ╣1,000, the profit is тВ╣200: markup on cost is 25%, while margin on sales is 20%.
Remember Additional Costs
Shipping, packaging, platform fees, payment charges, returns, rent, and taxes can change the true profit. If those costs are omitted, the result is only a simple price comparison.
Practical Use
Retailers, resellers, and small businesses can use this calculator to compare prices and estimate a basic margin. Keep accurate records and confirm accounting and tax treatment with a qualified professional when needed.
Explore More on Calcusite AI
Use the relevant calculator on Calcusite AI to test different values and compare scenarios. Results are estimates based on the inputs and assumptions you provide.