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Finance Calc Kit
Business

Profit Calculator

Calculate net profit, gross profit margin, markup percentage, and total revenue from cost and price.

Report tool

What does the profit calculator measure?

This calculator turns unit cost, selling price, quantity, and operating expenses into total revenue, gross profit, net profit, gross margin, net margin, and markup. Gross profit covers only the product cost. Net profit also subtracts operating overhead for the period. All math runs in your browser.

Markup expresses profit as a share of cost, while margin expresses profit as a share of revenue. To solve markup from cost alone, use the markup calculator. To express bottom-line profit as a percentage of revenue after all expenses, try the net profit margin calculator. For the sales volume where revenue first covers fixed and variable costs, use the break-even calculator. To solve for all five sales variables from any two known inputs, use the sales calculator.

Profit formulas

Start with revenue and separate direct product cost from operating expenses:

Revenue=Selling Price×Quantity\text{Revenue} = \text{Selling Price} \times \text{Quantity}
Gross Profit=(Selling Price−Cost Price)×Quantity\text{Gross Profit} = (\text{Selling Price} - \text{Cost Price}) \times \text{Quantity}
Net Profit=Revenue−(Cost Price×Quantity+Operating Expenses)\text{Net Profit} = \text{Revenue} - (\text{Cost Price} \times \text{Quantity} + \text{Operating Expenses})

Margin and markup convert those dollar results into percentages:

Gross Margin=Gross ProfitRevenue×100\text{Gross Margin} = \frac{\text{Gross Profit}}{\text{Revenue}} \times 100
Markup=Selling Price−Cost PriceCost Price×100\text{Markup} = \frac{\text{Selling Price} - \text{Cost Price}}{\text{Cost Price}} \times 100

Worked example

A seller buys one unit for $100, sells it for $150, and records $10 in operating expenses.

  • Total revenue: $150 × 1 = $150
  • Gross profit: ($150 − $100) × 1 = $50
  • Total cost: ($100 × 1) + $10 = $110
  • Net profit: $150 − $110 = $40
  • Gross margin: $50 ÷ $150 = 33.33%
  • Markup: ($150 − $100) ÷ $100 = 50%

Gross profit vs net profit

Gross profit answers whether the product itself is priced above direct cost. Net profit answers whether the business keeps money after overhead such as rent, payroll, and marketing. A positive gross profit with negative net profit usually means operating expenses are too high for current volume or pricing.

Frequently asked questions

What is the difference between markup and gross margin?
Markup divides profit by cost. Gross margin divides profit by selling price. On a $100 cost and $150 price, markup is 50% but gross margin is 33.33%.
Why include operating expenses separately?
Operating expenses capture overhead that does not scale directly with each unit sold, such as office rent or monthly software subscriptions. Subtracting them from revenue produces net profit.
Can net profit be negative?
Yes. When total cost exceeds revenue, the calculator shows a net loss. Review pricing, volume, or overhead to restore positive net profit.
Are results stored on a server?
No. Every calculation runs locally in your browser. Changing inputs updates the page URL so you can bookmark or share a scenario.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.