Profit & Loss Calculator
Calculate profit or loss, margins, markups, and break-even points for your business.
Profit & Loss Calculator
Calculate profit or loss based on cost price and selling price.
How to calculate profit and loss:
• Profit = Selling Price - Cost Price (when Selling Price > Cost Price)
• Loss = Cost Price - Selling Price (when Cost Price > Selling Price)
• Profit/Loss % = (Profit or Loss / Cost Price) × 100
Margin & Markup Calculator
Calculate margin and markup percentages, common metrics in business pricing.
About profit margin:
• Profit Margin = (Revenue - Cost) / Revenue × 100
• Selling Price = Cost / (1 - Margin%/100)
• Margin is calculated as a percentage of revenue (selling price)
Break-Even Calculator
Calculate how many units you need to sell to break even.
How break-even analysis works:
• Contribution Margin = Price Per Unit - Variable Cost Per Unit
• Break-Even Point (Units) = Fixed Costs / Contribution Margin
• Break-Even Point (Revenue) = Break-Even Units × Price Per Unit
Understanding Profit Metrics
Different profit metrics serve different purposes in business analysis:
Comparing Margin vs. Markup
| Metric | Formula | Based On |
|---|---|---|
| Margin | (SP-CP)/SP × 100 | Selling price |
| Markup | (SP-CP)/CP × 100 | Cost price |
Example: If you buy an item for $100 and sell it for $150:
- Margin = ($150-$100)/$150 × 100 = 33.33%
- Markup = ($150-$100)/$100 × 100 = 50%
Business Tips
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When pricing products, consider your target market, competition, perceived value, and not just costs.
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Regularly review all costs (including hidden ones) to ensure your pricing remains profitable.
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Different industries have different standard margins. Research your industry benchmarks.
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Break-even analysis is most useful when starting a new business or launching a new product.
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