FINBIZTOOLS
Profit Calculator
Work out business profit from revenue and cost. Enter the revenue for a period and the cost of achieving it to see the profit or loss and the resulting profit margin.
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Changes the currency symbol and number format only. Amounts are not converted.
How to use the Profit Calculator
- Enter the revenue for the period you are analyzing.
- Enter the total cost for that same period.
- Select Calculate to see the profit or loss and the profit margin.
- Change either figure and recalculate to compare scenarios.
Use the currency selector above the inputs to change the symbol. It changes the display only and does not convert amounts.
What does the Profit Calculator show?
Profit is what remains after cost is subtracted from revenue. It is the most basic measure of whether a period of business activity added value or lost money.
This calculator reports plain profit and loss from two entered totals. It does not separate cost into fixed and variable components; for that breakdown, use the Break-Even Calculator.
How the calculation works
Profit formula
Profit = Revenue − Cost
Profit margin (%) = (Profit ÷ Revenue) × 100
- Revenue is total sales or income for the period.
- Cost is total cost for the same period and scope as revenue.
A negative profit is a loss, not an error, and is displayed as a negative number. Profit margin cannot be calculated when revenue is zero, so that case is shown as not applicable rather than as an error or an infinite value.
Profit calculation example
Revenue of 100,000 and cost of 80,000 for the same period:
| Revenue | 100000 |
|---|---|
| Cost | 80000 |
| Revenue | 100000 |
|---|---|
| Cost | 80000 |
| Profit / loss | 20000 |
| Profit margin | 20% |
Revenue of 80,000 and cost of 100,000 gives a loss of −20,000 and a margin of −25%. Amounts are shown without a currency symbol because the arithmetic is identical in any currency; the currency selector only changes the symbol and number format.
Assumptions and limitations
Assumptions
- Revenue and cost are single totals you supply for a consistent period and scope; the calculator does not itemize either figure.
- Profit margin here is calculated on revenue, the same convention used by the Profit Margin Calculator; it is not the same percentage as markup, which divides by cost.
Limitations and why results can differ
- This is gross profit from the two entered totals, not net business profit after every overhead, tax or financing cost unless you have already included them in cost.
- It does not split cost into fixed and variable components. Use the Break-Even Calculator to find the sales volume needed to cover fixed costs.
Frequently asked questions
What is the difference between revenue and profit?
Revenue is total money coming in before any cost is subtracted. Profit is what remains after cost is subtracted from revenue.
Can profit be negative?
Yes. A negative profit is a loss. The calculator displays it as a negative number rather than treating it as an invalid result.
Why is profit margin sometimes not shown as a percentage?
When revenue is zero, dividing profit by revenue is undefined, so the calculator explains this instead of showing an infinite or meaningless number.
Is profit margin the same as markup?
No. Profit margin divides profit by revenue (selling price); markup divides profit by cost. Use the Markup Calculator to see the difference on the same numbers.
Methodology
Revenue and cost are each validated as finite numbers from 0 to 1,000,000,000,000. Profit is revenue minus cost, computed directly with no intermediate rounding before the result is rounded for display.
Profit margin divides profit by revenue and is only calculated when revenue is greater than zero; at zero revenue the calculator reports that the percentage is not applicable rather than an infinite or undefined value. The calculation runs in your browser and inputs are not sent to a server.
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Disclaimer
Results are calculated estimates based on the figures you enter. They are not accounting, pricing, tax or legal advice. Verify important business and pricing decisions with your own records and a qualified professional. Read the full Disclaimer.
Explore this topic
This tool is part of Pricing and Margins.
A common order: work out your margin, set a price from cost, then find the sales volume needed to break even.