How to use the Profit & Loss Calculator
- Enter the cost price of one unit (what you paid) and the selling price of one unit.
- If you sold several units, change the quantity. Otherwise leave it at 1.
- Press Calculate. The result says whether you made a profit or a loss and shows the amount, the percentage on cost (markup) and the percentage on selling price (margin).
Profit and loss formulas
Loss = Cost price − Selling price (when CP > SP)
Textbook and exam questions on profit and loss normally use markup (percentage on cost price). Business accounts often quote margin (percentage on selling price). This calculator shows both so there is no confusion.
Worked examples
Profit: cost ₹500, sold for ₹650. Profit = ₹150. Markup = 150 ÷ 500 × 100 = 30%. Margin = 150 ÷ 650 × 100 = 23.08%.
Loss: cost ₹800, sold for ₹650. Loss = ₹150. Loss on cost = 150 ÷ 800 × 100 = 18.75%. Loss on selling price = 150 ÷ 650 × 100 = 23.08%.
Markup and margin side by side
For an item that costs ₹100, the same profit looks very different as markup and as margin:
| Markup on cost | Selling price | Margin on selling price |
|---|---|---|
| 10% | ₹110 | 9.09% |
| 25% | ₹125 | 20.00% |
| 50% | ₹150 | 33.33% |
| 100% | ₹200 | 50.00% |
Common mistakes to avoid
- Mixing up markup and margin. A 50% markup is a 33.33% margin. Agree which one a person means before comparing numbers.
- Leaving costs out. Freight, packaging, platform fees and GST should be considered or your real profit will be lower than it looks.
- Ignoring returns and discounts. A discount or a returned item reduces the money you actually keep.
- Confusing revenue with profit. Total sales is not profit. Profit is what remains after costs.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of the cost price. Margin is profit as a percentage of the selling price. The same sale gives two different percentages: a ₹500 item sold for ₹650 has a 30% markup but a 23.08% margin.
How do I price a product to get a target margin?
Use Selling price = Cost price ÷ (1 − target margin). For a 25% margin on a ₹600 cost, the selling price is 600 ÷ 0.75 = ₹800.
What should I include in the cost price?
Include everything you pay to get the item ready to sell: purchase price, freight, packaging, import duty and any platform or payment fees you want to treat as cost. Leaving these out overstates your profit.
Can the percentage be above 100%?
Markup can exceed 100% when you sell for more than double the cost. Margin can never exceed 100% because the profit cannot be larger than the selling price.
How do I increase my profit percentage?
Lower your cost price through better buying, raise your selling price where the market allows, cut wastage and returns, or move sales towards products with higher margins.
How do I find the selling price from a profit percentage?
Use Selling price = Cost price × (1 + profit % ÷ 100). For a ₹400 item with a 25% profit on cost, the selling price is 400 × 1.25 = ₹500.
Does the profit percentage change if I sell more units?
No. The percentage stays the same because it is worked out per unit. The total profit amount grows with the number of units sold.