Profit/Loss Calculator
Work out profit or loss from a cost price and a selling price, along with the percentage margin. It handles both directions — sell above cost and you see the profit, sell below and it reports the loss rather than a negative profit dressed up as a positive number.
This is a simple illustrative calculation based only on the two numbers you enter — it doesn't account for taxes, shipping, fees or other costs of doing business.
How to calculate profit or loss
- Enter the cost price.
- Enter the selling price.
- Read the profit or loss below.
When you'd use this
- Small business pricing — Checking the margin on a product before settling on a price.
- Reselling — Working out what you actually made after buying and selling something on.
- Comparing suppliers — Seeing how a lower cost price changes your margin at the same selling price.
- Reviewing a sale — Confirming whether a discounted sale still left you ahead.
Good to know
- Percentage is calculated on cost price — This is the standard convention: profit percentage is profit divided by cost. Margin calculated against selling price is a different figure and a common source of confusion.
- Losses are named as losses — Selling below cost is reported as a loss with its own percentage, rather than as a negative profit.
- Overheads are not included — Only the two figures you enter are used. Shipping, packaging, fees and your own time all reduce real profit.
- It works in any currency — The arithmetic is currency-neutral and results come back in the units you entered.
Frequently asked questions
Is the percentage based on cost price or selling price?
Cost price — that's the standard way profit margin is calculated on a purchase.
What if I get a loss?
The result clearly shows “Loss” instead of “Profit” when the selling price is below the cost price.
Is profit percentage calculated on cost or on selling price?
On cost price, which is the usual convention for profit percentage. Retail margin is often quoted against selling price instead, so the same transaction can be described with two different percentages — always check which one someone means.
How do I work out the selling price for a target profit?
Multiply the cost price by 1 plus your target as a decimal. For 25% profit on a cost of 400, that is 400 × 1.25 = 500.
Why is my real profit lower than this?
Because a cost price rarely captures everything. Delivery, packaging, platform fees, payment charges and returns all come out of the margin this calculator shows.