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Profit Calculator

Use this free profit calculator to find your profit or loss from revenue and total cost. Enter your numbers to instantly see the profit amount, profit margin percentage, and whether your business is profitable.

Enter Values

Revenue (Total Sales)

Total income from all sales

Total Cost (All Expenses)

Include COGS, operating expenses, and any other costs

Result

Enter values above and click Calculate to see your result.

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Formula

Profit = Revenue - Total Cost

Subtract all costs from total revenue. A positive result is profit; negative is a loss. The profit margin (profit divided by revenue) shows the percentage of revenue you keep.

Worked Example

Revenue: $500, Total Cost: $380 Step 1: Profit = $500 - $380 = $120 Step 2: Margin = ($120 / $500) x 100 = 24% Result: $120 profit with a 24% margin. You keep $0.24 of every dollar.

Understanding Business Profit

Profit is the most fundamental measure of business performance. It tells you whether your business is earning more than it spends. This simple calculation is the starting point for all financial analysis, from monthly bookkeeping to annual financial statements.

Positive profit means revenue exceeds costs (the business is financially viable)
Negative profit (a loss) means costs exceed revenue (the business is losing money)
Gross profit uses only COGS. Net profit includes all operating expenses, taxes, and interest
A profitable business can still fail if cash flow is negative (revenue is delayed but costs are immediate)
Break-even is where revenue exactly equals cost (zero profit)

Track profit monthly to spot trends early. A declining margin even with growing revenue may indicate rising costs that need attention.

You can also calculate changes using our Margin Calculator, Net Profit Calculator, Gross Profit Calculator or Profit Margin Calculator.

Frequently Asked Questions

Can this show losses?

Yes. If total cost exceeds revenue, the result is negative, indicating a loss. The calculator clearly labels the result as either profit or loss.

Should I include taxes in total cost?

If you want net profit (after tax), include taxes in total cost. If you want pre-tax profit, exclude them. Both are useful for different purposes.

What is break-even?

Break-even is the point where revenue exactly equals total cost (profit = $0). Below break-even you lose money; above it you earn profit.

What is the difference between gross and net profit?

Gross profit = Revenue - COGS (direct costs only). Net profit = Revenue - ALL costs (COGS + operating expenses + taxes + interest). Net profit is the "bottom line."

How often should I calculate profit?

Most businesses track profit monthly. Seasonal businesses should compare year-over-year (same month last year) rather than month-to-month.

AI Assistant

Ask about this calculator

I can help you understand the profit calculator formula, interpret your results, and answer follow-up questions.

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