How to Use the Profit and Loss Calculator
This profit and loss calculator compares cost price with selling price. Enter the amount paid or spent per unit, the sale price, quantity, and display currency. The calculator classifies the outcome, reports the per-unit amount and percentage, and scales the values to the selected quantity.
Cost price should include the expenses you want the result to represent. A retailer might include purchase and per-unit preparation costs, while a trader may include acquisition fees. Currency changes formatting only and does not convert values.
Profit and Loss Formulas
Profit equals selling price minus cost price when the selling price is higher. Loss equals cost price minus selling price when the selling price is lower. Equal prices produce a break-even result.
Standard profit or loss percentage divides the amount by cost price and multiplies by 100. This denominator matters: changing it to selling price produces margin, which answers a different question.
Profit Percentage vs Profit Margin
Markup measures the signed difference as a percentage of cost price. Gross margin measures the same signed difference as a percentage of selling price or revenue. A product costing 80 and selling at 100 has a 25% markup but a 20% margin.
| Measure | Formula | Denominator |
|---|---|---|
| Profit percentage | Profit ÷ cost × 100 | Cost price |
| Loss percentage | Loss ÷ cost × 100 | Cost price |
| Markup | Difference ÷ cost × 100 | Cost price |
| Gross margin | Difference ÷ selling price × 100 | Revenue |
Cost Price, Selling Price, and Quantity
Quantity does not change the per-unit percentage when every unit has the same cost and price. It multiplies total cost, total revenue, and total profit or loss. If unit economics vary, calculate separate groups or use weighted averages rather than assuming one price.
A selling price of zero represents a complete loss: the loss percentage and negative markup are 100%. Gross margin is undefined because its revenue denominator is zero, so the calculator displays “Not defined” instead of infinity.
Interpreting Profit and Loss Results
A positive result does not automatically mean a complete business is profitable because this calculation only includes the cost entered by the user. Rent, salaries, tax, financing, returns, platform charges, and unsold inventory may still affect net income. Use a fully loaded unit cost when the goal is pricing analysis, and use the break-even calculator when fixed costs must also be recovered.
Percentages make products with different prices easier to compare, while currency amounts show the cash impact. Review both measures and confirm that the same cost definition is used across every comparison.
Profit and Loss Calculator FAQ
How do I calculate profit percentage?
Subtract cost price from selling price to find profit. Divide profit by cost price and multiply by 100.
How do I calculate loss percentage?
Subtract selling price from cost price to find loss. Divide the loss by cost price and multiply by 100.
What is the difference between markup and margin?
Markup uses cost price as the denominator. Margin uses selling price, so it is normally smaller than markup during a profit.
Can profit percentage exceed 100%?
Yes. Profit exceeds 100% of cost when selling price is more than twice cost price.
What happens when selling price is zero?
The entire cost is lost, giving a 100% loss. Margin is undefined because there is no revenue.
How do I calculate total profit for multiple units?
Multiply per-unit profit by quantity. This assumes every unit has the same cost and selling price.
Related Calculators
Break-Even Calculator · ROI Calculator · Percentage Calculator · Percentage Increase Calculator · Discount Calculator · Weighted Average Calculator