Profit Calculator
Find your profit or loss, gross profit margin and markup from a product's cost and selling price. You can also work backward to find a target selling price or maximum cost price, with optional discounts, quantities and business expenses.
Calculate profit and profit margin
Enter the cost and selling price per unit to see profit, gross margin, markup and estimated profit after any expenses you add.
Quantity, discount and optional expenses
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Profit calculator formula: Profit = Selling price − Cost price. Gross profit margin (%) = (Profit ÷ Selling price) × 100; Markup (%) = (Profit ÷ Cost price) × 100. With cost ₹500 and selling price ₹800, the profit is ₹300, gross margin 37.5%, and markup 60%.
What is a profit calculator?
A profit calculator measures the difference between the money received from sales and the cost incurred to make or buy the product. It helps a retailer, small business, reseller or online seller compare a selling price with the underlying unit cost. The result can be a profit, a loss or break-even.
CalcuPortal also estimates revenue and profit for multiple items, accounts for discounts and optional selling expenses, and works backward from a desired margin or markup to help set a price. Gross profit and estimated profit after entered expenses are shown separately so the different meanings are clear.
How to calculate profit, loss and profit percentage
Gross profit = Effective selling price − Product cost
Margin = (Gross profit ÷ Selling price) × 100
Markup = (Gross profit ÷ Product cost) × 100
Here, effective selling price means the price received after a percentage discount. Gross profit in this tool subtracts product cost only. It does not deduct optional variable selling expenses or batch fixed costs until the separate estimated-profit calculation. This keeps the definitions consistent.
For profit after the expenses you choose to enter, use: Estimated profit = Revenue − Product costs − Variable expenses − Fixed expenses. That estimate is not necessarily accounting net income because taxes, returns, interest and other costs may be missing.
Profit calculation example: ₹500 cost and ₹800 selling price
Suppose you buy a product for ₹500 and sell it for ₹800 without a discount or additional cost. The gross profit per unit is ₹800 − ₹500 = ₹300. Gross margin divides that ₹300 by the selling price (₹800) to give 37.5%. Markup divides it by the product cost (₹500) to give 60%.
| Metric | Calculation | Result |
|---|---|---|
| Product cost | Entered amount | ₹500 |
| Selling price | Entered amount | ₹800 |
| Gross profit | ₹800 − ₹500 | ₹300 |
| Gross profit margin | ₹300 ÷ ₹800 × 100 | 37.5% |
| Markup | ₹300 ÷ ₹500 × 100 | 60% |
| Sale below cost: ₹400 | ₹400 − ₹500 | ₹100 loss |
Profit margin vs markup: what is the difference?
Margin and markup both use the difference between selling price and item cost, but they divide by different amounts. Profit margin is measured against revenue. Markup is measured against cost. That means a 30% markup is not the same as a 30% margin.
Gross profit margin
Shows what percentage of the selling price remains after subtracting product cost. Useful for comparing product profitability.
Markup on cost
Shows the profit percentage relative to the item's cost. Useful when a seller needs to add a chosen percentage to a cost.
Profit after expenses
Subtracts the additional unit and batch expenses you enter, alongside product costs. It is a planning estimate, not audited net profit.
For example, a ₹100 item with a 30% markup sells for ₹130 and has approximately 23.08% gross margin. To achieve a 30% gross margin on a ₹100 cost instead, the selling price must be approximately ₹142.86, before other costs. See Shopify's margin-versus-markup explanation for a detailed comparison.
How to find selling price from a target profit margin
To set a selling price for a desired percentage margin, start with your cost and divide it by one minus the target margin as a decimal. For example, a ₹500 cost at a 25% gross margin requires an effective selling price of ₹500 ÷ 0.75 = approximately ₹666.67.
Price = Relevant unit cost ÷ (1 − Margin% / 100)
Price = Relevant unit cost × (1 + Markup% / 100)
List price = Required effective price ÷ (1 − Discount% / 100)
The Target selling price tab can include additional variable costs and a per-unit allocation of fixed batch expenses. Its target percentage is therefore measured after all entered costs rather than product cost alone. It then adjusts the required list price if you plan to apply a discount to the sale.
How to find maximum product cost from selling price
If you know the selling price and the margin you want to keep, the calculator can solve for the maximum product cost you can afford. For example, a selling price of ₹800 with a 30% target margin and no other expenses permits a product cost of ₹800 × 0.70 = ₹560.
When you enter other selling or batch expenses, the Find cost price tab deducts those from the cost allowance. If the selected target cannot be reached even with a zero product cost, the calculator displays an explanation rather than presenting a negative cost as a valid purchase price.
Profit calculation with quantity, discount and expenses
Assume the product costs ₹500, has an original selling price of ₹800, and you sell 10 units with a 10% discount. The effective selling price is ₹720, resulting in ₹7,200 revenue. If variable selling expenses are ₹30 per unit and batch-level fixed expenses are ₹200, then the estimated profit after those costs is ₹1,700.
| Calculation | Amount |
|---|---|
| 10 units × ₹720 after discount | ₹7,200 revenue |
| 10 units × ₹500 product cost | ₹5,000 product cost |
| 10 units × ₹30 extra variable expense | ₹300 |
| Fixed batch expenses | ₹200 |
| Estimated profit after entered expenses | ₹1,700 |
| Margin after entered expenses | 23.61% |
This example highlights why a positive gross margin does not always guarantee that enough profit remains after packaging, shipping, advertising or overhead. Include costs consistently when comparing product scenarios.
How do you calculate a loss or break-even?
A loss occurs when revenue is smaller than the relevant costs. If a product costs ₹500 and sells for ₹400, it produces a gross loss of ₹100 per item and a gross margin of −25%. If the selling price is zero, margin based on selling price is mathematically undefined; the calculator labels it accordingly.
A break-even price is the minimum effective selling price needed to cover the costs you entered for the selected quantity. Where a percentage discount is applied, the pre-discount list price must be higher than that effective break-even selling price. Exact business break-even analysis may also depend on demand, sales mix, fixed-cost allocation and taxes.
Gross profit vs net profit
Gross profit is generally revenue minus the cost of goods sold (COGS). Net profit accounts for other applicable expenses and deductions, such as operating costs, interest and taxes. Businesses use different accounting classifications, so these amounts should not be treated as interchangeable.
This calculator identifies gross profit from item costs and an estimated profit after the additional expenses entered into the fields. It does not calculate a formal net profit under accounting standards or automatically include tax, returns, refunds, financing, or every other possible business cost.
Where a profit calculator is useful
- Retail businesses: compare purchase costs and retail prices to understand gross margins.
- E-commerce sellers: model product costs, per-order selling expenses and batch marketing costs.
- Resellers and wholesalers: check losses, bulk quantity margins and price targets.
- Small businesses: estimate how discounts and extra costs affect profit.
- Students: understand profit, loss, markup and margin formulas through worked examples.
Common profit and pricing mistakes
- Confusing margin with markup: the percentages use different denominators and lead to different selling prices.
- Leaving out expenses: shipping paid by the seller, ads and packaging can reduce the remaining profit.
- Ignoring discounts: a discount reduces revenue even if the unit cost stays unchanged.
- Reporting gross profit as net profit: a full net-profit calculation may require taxes, interest and other deductions.
- Using a zero denominator: margin is undefined at zero revenue and markup is undefined at zero item cost.
- Rounding at every step: calculate with unrounded intermediate values and round displayed totals at the end.
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Frequently Asked Questions
How do I calculate profit?
For one unit, subtract the item cost from the selling price. For an expense-adjusted batch estimate, subtract product costs, entered variable expenses and fixed batch expenses from total revenue.
What is the difference between margin and markup?
Margin divides gross profit by selling price. Markup divides gross profit by product cost. For example, ₹500 cost and ₹800 selling price produces 37.5% margin but 60% markup.
How do I calculate selling price for 30% profit margin?
With no other costs or discount, divide cost by 0.70. A ₹700 product cost requires a selling price of ₹1,000 to achieve a 30% gross margin.
Can this tool calculate losses?
Yes. When total revenue is less than entered product and selling expenses, it reports a negative profit, indicating a loss for the selected assumptions.
Does this include shipping, ads and other expenses?
Only when you enter those amounts as additional per-unit or batch-level costs. The calculator does not automatically identify every expense.
Why is markup unavailable for zero cost?
Markup percentage requires division by product cost. If product cost is zero, it is mathematically undefined rather than zero percent.
Is estimated profit after expenses the same as net profit?
Not necessarily. It deducts only the costs entered, and does not automatically account for taxes, refunds, interest or other accounting adjustments.
Last updated: October 18, 2026. Results are estimates based on the amounts entered. Taxes, returns and unentered expenses are excluded; this is not a substitute for accounting or business advice.