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Profit Loss Calculator

Calculate your profit or loss amount and percentage based on cost price, selling price, and quantity.

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Profit & Loss Calculator — Instantly Find Your Profit Amount, Loss Amount, and Margin Percentage

Whether you're a retailer checking if a new product line is worth stocking, a trader evaluating a completed deal, or a student preparing for a commerce exam, this Profit & Loss Calculator gives you the complete picture in one click. Enter your cost price, selling price, and quantity — and instantly see the total cost, total revenue, net profit or loss amount, and the profit/loss percentage based on cost. No manual calculation needed, no formula memorisation required.

Understanding your true margin is the foundation of every good business decision. A product selling at ₹500 with a cost of ₹380 seems profitable — but at what margin? Is 31.6% gross margin good for that category? Should you offer a 10% discount? What happens to margins if your supplier raises prices by 5%? This calculator answers all of those questions instantly.

The Formulas — Profit, Loss, and Percentage Explained

When Selling Price > Cost Price (Profit):

  • Profit Amount = (Selling Price − Cost Price) × Quantity
  • Profit Percentage = (Profit Amount ÷ Total Cost Price) × 100

When Selling Price < Cost Price (Loss):

  • Loss Amount = (Cost Price − Selling Price) × Quantity
  • Loss Percentage = (Loss Amount ÷ Total Cost Price) × 100

Example 1 — Profit: Cost Price ₹250/unit, Selling Price ₹340/unit, Quantity 50 units. Total Cost = ₹12,500. Total Revenue = ₹17,000. Profit = ₹4,500. Profit % = (4,500 ÷ 12,500) × 100 = 36%.

Example 2 — Loss: Cost Price ₹180/unit, Selling Price ₹155/unit, Quantity 100 units. Total Cost = ₹18,000. Total Revenue = ₹15,500. Loss = ₹2,500. Loss % = (2,500 ÷ 18,000) × 100 = 13.9%.

Note: Profit and loss percentage is always calculated on the Cost Price (CP), not the selling price — this is the standard convention in business and academic contexts. Gross margin percentage (used in accounting) is calculated on Selling Price. Both measure profitability differently.

Profit % vs Gross Margin % — The Difference That Matters

These two terms are often confused but measure different things:

  • Profit % (on cost): Used in commerce, trading, and academic contexts. Formula: Profit ÷ Cost Price × 100. If CP = ₹100, SP = ₹125 → Profit % = 25%.
  • Gross Margin % (on selling price): Used in retail, finance, and accounting. Formula: Profit ÷ Selling Price × 100. Same example: ₹25 ÷ ₹125 × 100 = 20% margin.

A 25% profit on cost and a 20% gross margin are the same transaction — just expressed differently. When comparing margins across businesses or discussing pricing with buyers, always clarify which basis is being used to avoid confusion. This calculator uses the standard profit-on-cost percentage.

Markup vs Margin — Setting the Right Selling Price

To set a selling price that achieves a target profit percentage:

  • Selling Price = Cost Price × (1 + Target Profit % ÷ 100)
  • Example: To achieve 40% profit on a product costing ₹200: SP = ₹200 × 1.40 = ₹280.

To find the selling price needed for a target gross margin:

  • Selling Price = Cost Price ÷ (1 − Target Margin % ÷ 100)
  • Example: For 30% gross margin on a ₹200 product: SP = ₹200 ÷ 0.70 = ₹285.71.

The key insight: to achieve a 30% margin, you need a 42.86% markup on cost. Many small businesses set prices using a cost markup and incorrectly assume it equals their margin — this calculator helps you understand the actual profit percentage on each transaction.

How Discounts Erode Profit — A Practical Analysis

Discounts are a popular sales tool, but they have a disproportionate impact on profit because they reduce revenue while cost stays fixed. Consider a product with CP ₹400, SP ₹600 (50% profit on cost, 33.3% margin). If you offer a 10% discount (sell at ₹540):

  • New profit = ₹540 − ₹400 = ₹140
  • New profit % = (140 ÷ 400) × 100 = 35% (down from 50%)
  • Profit dropped by 30% in absolute terms despite only a 10% price cut

A 15% discount on this product reduces profit by 45%. This is why retailers need to know their exact margin before agreeing to discounts or promotional pricing — use this calculator to check the revised profit at the discounted selling price before finalising any offer.

Frequently Asked Questions About Profit & Loss

The break-even selling price is simply the cost price per unit — where total revenue equals total cost and profit/loss = zero. In practice, the true break-even must also include indirect costs: rent, salaries, utilities, shipping, packaging, and other overheads allocated per unit. If your overhead costs per unit are ₹30 on a product that costs ₹200 to buy, your true break-even selling price is ₹230, not ₹200. Always factor in total cost (direct + indirect) for a meaningful break-even analysis.
For GST-registered businesses that claim Input Tax Credit (ITC), GST on purchases is not a cost — you reclaim it. The effective cost is the pre-GST base price. Similarly, the selling price for profit calculation is the pre-GST amount (GST collected is passed to the government). For unregistered businesses that cannot claim ITC, the full GST-inclusive purchase price becomes the cost price. When using this calculator, enter pre-GST values for accurate margin analysis if you are a registered GST business.
Gross margins vary widely by category. Grocery/FMCG retail: 10–20% gross margin. Apparel: 40–60%. Electronics: 5–15%. Jewellery: 15–25%. Pharmaceuticals: 20–30%. Restaurants: 60–70% gross margin on food (but after labour and rent, net margins are typically 5–10%). The relevant benchmark is your category average, not a universal number. What matters most is whether your gross margin covers all fixed costs (rent, staff, utilities) and still leaves a net profit.
Yes. Enter buy price as cost price, sell price as selling price, and number of shares as quantity. The calculator gives you gross P&L. For net trading P&L, you need to also subtract brokerage, STT (Securities Transaction Tax), exchange fees, and SEBI charges. For equity delivery trades: STT 0.1% on both buy and sell. For intraday: STT 0.025% on sell side only. Capital gains tax (LTCG at 12.5% above ₹1.25 lakh/year for equity held 12+ months; STCG at 20% for under 12 months) also affects net profit.
Rearrange the profit formula: Cost Price = Selling Price × 100 ÷ (100 + Profit%). Example: If SP = ₹520 and profit % = 30%, then CP = ₹520 × 100 ÷ 130 = ₹400. For loss: CP = SP × 100 ÷ (100 − Loss%). Example: SP = ₹350, loss % = 12.5%, CP = ₹350 × 100 ÷ 87.5 = ₹400. These reverse calculations are useful when you know a deal was at a stated margin but need to back-calculate the original cost.
Gross profit = Revenue minus direct costs of goods sold (COGS). It ignores operating expenses. Operating profit (EBIT) = Gross profit minus operating expenses (rent, salaries, utilities, marketing). Net profit = Operating profit minus interest expenses and taxes. This calculator computes gross profit on a per-transaction basis. For a complete business P&L, you need to factor in all three levels — a high gross margin business can still be loss-making at the net level if operating costs are excessive.
Business losses (from normal trade operations) can generally be set off against other business income in the same year under Indian income tax rules. If the loss cannot be fully absorbed, it can be carried forward for 8 assessment years and set off against future business profits. However, speculative business losses (e.g., intraday trading) can only be set off against speculative business income. Capital losses from sale of assets are treated separately and can only offset capital gains, not business income.