💵 Profit Calculator
Calculate profit, margin, and markup
Include all costs (COGS + operating expenses)
How to Use This Calculator
Enter Revenue/Sales
Input the total revenue or sales - all income from selling products or services.
Enter Total Costs
Enter all costs including cost of goods sold (COGS) and operating expenses.
Review Profit Metrics
See the calculated profit, profit margin, and markup percentage. Use these metrics to understand profitability and make pricing decisions.
Formula
Profit = Revenue - Total Costs
Profit Margin = (Profit / Revenue) × 100
Markup = (Profit / Costs) × 100
Example Calculation:
If revenue $100,000, total costs $60,000:
• Profit = $100,000 - $60,000 = $40,000
• Profit margin = ($40,000 / $100,000) × 100 = 40%
• Markup = ($40,000 / $60,000) × 100 = 66.67%
About Profit Calculator
A profit calculator helps you calculate profit, profit margin, and markup percentage. Profit = Revenue - Total Costs. Profit margin shows what percentage of revenue becomes profit, while markup shows what percentage is added to costs. Understanding these metrics is essential for business success, pricing decisions, and profitability analysis. Profit is the bottom line - the money remaining after all expenses are paid. Higher profit margins indicate better profitability and efficiency.
When to Use This Calculator
- Profitability Analysis: Calculate profit and profit margins
- Pricing Decisions: Understand profit margins for pricing
- Business Planning: Plan and forecast profitability
- Performance Evaluation: Evaluate business profitability
Understanding Profit Metrics
- Profit: Revenue minus all costs
- Profit Margin: Profit as percentage of revenue
- Markup: Profit as percentage of costs
- Higher Margins: Better profitability (generally good)
Why Use Our Calculator?
- ✅ Profitability Analysis: Calculate profit accurately
- ✅ Pricing Decisions: Understand profit margins
- ✅ Business Planning: Plan profitability
- ✅ Performance Evaluation: Evaluate profitability
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is profit?
Profit is the money remaining after all expenses are deducted from revenue. Profit = Revenue - Total Costs. Profit is the bottom line and represents the money kept by the business. Higher profit indicates better profitability and efficiency. Understanding profit is essential for business success and financial health.
What's the difference between profit margin and markup?
Profit margin and markup are different ways to express profitability. Profit margin = (Profit / Revenue) × 100 - shows profit as percentage of selling price (revenue). Markup = (Profit / Costs) × 100 - shows profit as percentage of cost. Markup is always higher than profit margin because the denominator (costs) is smaller than revenue. For example, if cost $60, profit $40, revenue $100: Profit margin = 40%, Markup = 66.67%. Both metrics are useful for different purposes.
What's a good profit margin?
A good profit margin depends on the industry and business model. Generally, profit margins above 20% are considered excellent, 10-20% are good, 5-10% are average, and below 5% are low. However, margins vary significantly by industry: Software/SaaS (15-25%), Retail (2-10%), Manufacturing (5-15%), Services (10-20%). Compare to industry benchmarks and historical trends. Higher margins indicate better profitability and efficiency.
How do I increase profit?
To increase profit: (1) Increase revenue - raise prices, increase sales volume, (2) Decrease costs - reduce costs, improve efficiency, (3) Both - increase revenue and decrease costs simultaneously. The most effective approach is often a combination of both. Focus on high-margin products/services and optimize costs. Improving profit margin requires careful management of both revenue and costs.