Profit Loss Calculator
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How to Use the Profit Loss Calculator
Enter the cost price
Enter the cost price.
Input the selling price
Input the selling price.
See your profit or loss amount and percentage
See your profit or loss amount and percentage.
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. For small shop owners, online sellers, and wholesale traders across India, knowing the exact profit percentage on each transaction isn't optional — it's the difference between a business that grows and one that quietly bleeds money.
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%.
Example 3 — High-volume, thin-margin: A wholesaler buying 500 units of a product at ₹42 each (total cost ₹21,000) and selling at ₹46 per unit (total revenue ₹23,000) earns ₹2,000 profit — just 9.5% on cost. This looks modest, but across 50 such transactions per month, that's ₹1,00,000 in profit. Volume businesses survive on thin margins; this calculator helps you see whether the numbers work at scale.
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. A 25% profit on cost equals a 20% gross margin — same transaction, different lens.
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.
This distinction becomes critical in real-world negotiations. A buyer at a retail chain might say "we need 30% margin" — they mean 30% of the selling price, not 30% on cost. To achieve that, you need to price at Cost Price ÷ 0.70, which is a 42.86% markup. Not understanding this difference is one of the most common pricing mistakes made by small businesses entering B2B sales for the first time.
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. A furniture workshop in Jodhpur buying raw teak at ₹800/cubic foot and selling finished tables at ₹1,800 might think they're making a 125% profit (which they are, on cost) — but their gross margin is only 55.6%. Both numbers are correct; the confusion arises when one is used in place of the other.
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%. A 25% discount — common during festive season sales and platform promotions — drops profit from ₹200 to ₹50 per unit, a 75% collapse. 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.
The deeper problem with discounting is that once customers see the discounted price, the original price becomes an anchor. Permanent markdowns or habitual discounting train customers to never pay full price — a pattern that has destroyed profitability for countless Indian e-commerce sellers. Know your floor price (the minimum you can sell at without losing money), and never discount below it, regardless of competitive pressure.
Break-Even Analysis — Finding Your Floor
Break-even is the point where total revenue equals total cost — no profit, no loss. Knowing your break-even selling price is essential for any business, from a street vendor to a manufacturing unit. The formula is straightforward:
Break-Even Price = Total Fixed Costs ÷ Units Sold + Variable Cost Per Unit
If your monthly fixed costs (rent, salaries, electricity, internet) total ₹80,000 and you sell 2,000 units per month with a variable cost of ₹35 per unit, your break-even selling price is ₹80,000 ÷ 2,000 + ₹35 = ₹75. Selling below ₹75 means you're operating at a loss, even if each individual transaction appears profitable. Many small businesses fail not because they're selling at a loss on each item, but because their volume doesn't cover the fixed costs they've committed to.
Use this calculator to check individual transaction margins, but regularly revisit your break-even at the business level. A shop owner in Pune selling imported kitchenware at 40% profit on each product can still run at a loss if monthly sales don't cover ₹1.2 lakh in rent and ₹60,000 in staff salaries. Margin per unit and total profitability are related but distinct questions — both need answering.