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

Total income from all sales

Include COGS, operating expenses, and any other costs

Result

Enter values above and click Calculate to see your result.

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Formula

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Core Formula
Profit=RevenueTotal Cost\text{Profit} = \text{Revenue} - \text{Total Cost}

How it works: 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.

Review and Methodology

Updated Mar 26, 2026

This calculator runs locally in your browser. Inputs are converted into the units required by the formula, and the result is paired with supporting references so you can verify the method before using it for planning or estimates.

Worked Example

Revenue: $500, Total Cost: $380
1Step 1: Profit = $500 - $380 = $120
2Step 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.

How do I add this Profit Calculator to my site?

Absolutely. Use the "Embed" option above to tailor the dimensions, color scheme, and styling to match your site. Copy the generated iframe snippet and drop it into your HTML, WordPress editor, or any CMS. There is no cost and no account required. See calculory.com/services/embed-calculators for a step-by-step walkthrough.

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