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About

Profit Calculator

Calculate your profit or loss and find out what percentage of your selling price represents your profit.

What does this calculator do?

The Resouria Profit Calculator compares the cost of an item with its selling price. It calculates the amount you gain or lose and, when there is a selling price, calculates the corresponding profit margin.

For example, if an item costs ₦50,000 and is sold for ₦65,000, the profit is ₦15,000. The profit margin is calculated using the ₦65,000 selling price as the denominator.

IMPORTANT
This calculator works with the cost price and selling price you provide. Other business expenses such as taxes, transport, salaries, advertising and payment fees are not automatically included unless you include them in your cost figure.
01

Calculate Your Profit

Enter your cost price and selling price to calculate your profit, loss and profit margin.

How much the item or product cost you.
How much you sell the item for.
FORMULAS
Profit = Selling Price − Cost Price
Profit Margin = (Profit ÷ Selling Price) × 100
A positive result indicates a profit, a negative result indicates a loss, and zero means the selling price equals the cost price.
Guide

How to Calculate Profit

You only need two figures to calculate the basic profit or loss on a sale.

1. Enter your cost

Enter the amount you paid for the product or the cost you want to use as the basis for your calculation.

2. Enter your selling price

Enter the amount the customer pays or the amount you intend to charge.

3. Calculate

The calculator subtracts your cost from your selling price to determine the profit or loss.

4. Check the margin

The calculator also expresses your profit as a percentage of the selling price.

02

Your Profit

The results below show the amount of profit or loss, profit margin and original cost.

PROFIT / LOSS
-
PROFIT MARGIN
-
COST PRICE
-
03

Calculation Details

Selling Price -
Cost Price -
Profit / Loss -
Profit Margin -
04

Break-Even Point

Your basic break-even selling price is the amount required to recover the cost entered into the calculator.

BREAK-EVEN PRICE
-
Selling at the break-even price produces neither a profit nor a loss based on the cost entered. Additional business expenses may require a higher actual selling price.
05

Profit Margin vs Markup

Profit margin and markup are related, but they are calculated using different bases.

Profit Margin Profit ÷ Selling Price × 100
Markup Profit ÷ Cost Price × 100
Example

Worked Profit Example

Suppose a business purchases an item for ₦50,000 and sells it for ₦65,000.

STEP 1 — CALCULATE PROFIT
₦65,000 − ₦50,000 = ₦15,000
STEP 2 — CALCULATE PROFIT MARGIN
(₦15,000 ÷ ₦65,000) × 100 ≈ 23.08%
STEP 3 — CALCULATE MARKUP
(₦15,000 ÷ ₦50,000) × 100 = 30%

The sale therefore generates a ₦15,000 profit, a profit margin of approximately 23.08%, and a markup of 30%.

Learn

Understanding Profit

Profit is the amount left after subtracting the relevant cost from the selling revenue. In its simplest form, profit is the difference between what you receive from a sale and what the item cost you.

A positive result means the selling price is higher than the entered cost. A negative result means the selling price is lower than the entered cost and the transaction produces a loss.

For a complete business profitability analysis, however, you may need to consider costs beyond the purchase price. A product can appear profitable based on its purchase price while producing a much smaller actual business profit after other expenses are included.

Uses

Common Uses of a Profit Calculator

Retail and reselling

Check the expected profit on products purchased for resale.

Small business pricing

Compare different selling prices and understand the profit associated with each option.

Product evaluation

Identify which products generate more profit from a given selling price.

Business planning

Estimate basic profit before considering broader operating costs and business expenses.

Tips

Practical Pricing Tips

Notes

Important Limitations

This calculator provides a basic profit and profit-margin calculation from the two values entered. It is not a full accounting or business profitability system.

Privacy

Your Calculation Stays in Your Browser

The calculation is performed directly in your browser using JavaScript. The prices entered into this calculator are used to produce the result on this page and do not need to be sent to a server for the calculation.

FAQ

Frequently Asked Questions

Subtract the cost price from the selling price.

Profit = Selling Price − Cost Price

If the result is positive, you have a profit. If it is negative, you have a loss.

Profit margin expresses profit as a percentage of the selling price.

Profit Margin = (Profit ÷ Selling Price) × 100

For example, a ₦20,000 profit on a ₦100,000 selling price represents a 20% profit margin.

Profit is the actual monetary difference between the selling price and cost.

Profit margin expresses that profit as a percentage of the selling price.

For example, ₦15,000 is the profit in a sale with a ₦50,000 cost and ₦65,000 selling price. The corresponding profit margin is approximately 23.08%.

Selling below your entered cost produces a negative profit, which means the transaction represents a loss based on those figures.

For example, if an item costs ₦50,000 and is sold for ₦45,000:

₦45,000 − ₦50,000 = −₦5,000

The basic loss is therefore ₦5,000.

No.

Profit margin uses the selling price as the denominator, while markup uses the cost price.

Margin = Profit ÷ Selling Price × 100
Markup = Profit ÷ Cost Price × 100

Because they use different bases, the two percentages are normally different.

It calculates the basic profit or loss from the cost and selling price you provide.

Actual business profitability may also depend on expenses such as salaries, rent, utilities, transportation, advertising, taxes, payment fees, returns and other operating costs.

For a more complete analysis, those costs need to be included in your overall business calculations.

In the simplest calculation, the break-even selling price is equal to the cost price.

If an item costs ₦50,000, selling it for ₦50,000 gives a basic profit of zero.

However, if you have additional costs associated with the sale, your true break-even price may need to be higher.
Disclaimer

Calculation Disclaimer

Results provided by this calculator are for general informational and business-planning purposes. They are based only on the values entered and should not be treated as accounting, tax, investment or professional financial advice. For official financial records, use appropriate accounting records and professional guidance.


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