Profit & Loss Calculator - Find Profit or Loss Percentage

Calculate profit or loss on any transaction with our free online profit and loss calculator. Enter cost price and selling price to instantly find profit/loss amount and percentage.

Cost Price ($)

Selling Price ($)

Examples:

Understanding Profit and Loss

Profit and loss calculations are fundamental to business and personal finance. Whether you're running a company, selling items online, investing in stocks, or just comparing deals, knowing how to calculate profit or loss percentage helps you make smarter financial decisions.

The key insight is that profit/loss percentage is always calculated relative to the cost price, not the selling price. This standardization lets you compare transactions of different sizes fairly.

The Formulas

Profit

Profit = Selling Price - Cost Price

Profit % = (Profit ÷ Cost Price) × 100

Occurs when Selling Price > Cost Price

Loss

Loss = Cost Price - Selling Price

Loss % = (Loss ÷ Cost Price) × 100

Occurs when Selling Price < Cost Price

Worked Examples

Example 1: Retail Profit

You buy a product for $80 and sell it for $120. What's your profit percentage?

Cost Price = $80

Selling Price = $120

Profit = $120 - $80 = $40

Profit % = ($40 ÷ $80) × 100 = 0.5 × 100 = 50%

You made a 50% profit

Example 2: Investment Loss

You bought stock for $500 and sold it for $400. What's your loss percentage?

Cost Price = $500

Selling Price = $400

Loss = $500 - $400 = $100

Loss % = ($100 ÷ $500) × 100 = 0.2 × 100 = 20%

You lost 20% of your investment

Example 3: Break Even

You buy an item for $100 and sell it for $100. What's the profit or loss?

Cost Price = $100

Selling Price = $100

Profit/Loss = $100 - $100 = $0

Profit/Loss % = 0%

You broke even - no profit, no loss

Example 4: Finding Selling Price

You want a 25% profit on an item that costs $60. What should you sell it for?

Cost Price = $60

Desired Profit = 25%

Profit Amount = $60 × 0.25 = $15

Selling Price = $60 + $15 = $75

Sell for $75 to achieve 25% profit

Example 5: Finding Cost Price

You sold something for $90 at a 10% loss. What did you pay for it?

Selling Price = $90

Loss = 10%

Selling Price = Cost × (1 - 0.10) = Cost × 0.90

Cost = $90 ÷ 0.90 = $100

Original cost was $100

Quick Fact

The concept of profit percentage has been used for thousands of years. Ancient Mesopotamian merchants around 2000 BCE used clay tablets to record transactions with profit margins. The Code of Hammurabi (1750 BCE) even regulated maximum profit rates for certain goods. Modern percentage notation (%) didn't appear until the 15th century, evolving from the Italian "per cento" (per hundred).

Frequently Asked Questions

What's the difference between markup and profit margin?

Markup is profit as a percentage of cost. Profit margin is profit as a percentage of selling price. If you buy for $80 and sell for $100: Markup = $20/$80 = 25%, but Profit Margin = $20/$100 = 20%. They're different! Retailers often confuse these.

Can profit percentage be more than 100%?

Yes! If you buy something for $10 and sell it for $25, your profit is $15, which is 150% of the cost. High-margin businesses like software or pharmaceuticals often have profit percentages well over 100%.

How do I calculate selling price for a target profit %?

Selling Price = Cost Price × (1 + Profit% ÷ 100). For 30% profit on a $100 item: $100 × 1.30 = $130. For a target loss: Selling Price = Cost × (1 - Loss% ÷ 100).

Why is profit percentage based on cost, not selling price?

It's a convention that makes comparison easier. Your cost is what you control; selling price varies by market. Also, calculating from cost ensures consistency - a 50% markup always means the same thing regardless of the final price.

What's a good profit percentage?

It varies by industry. Grocery stores operate on 1-3% net profit. Restaurants aim for 3-5%. Software companies can achieve 20-30% or more. Retail typically targets 5-10%. What matters is your industry average and whether you're profitable enough to sustain and grow.

How do discounts affect profit percentage?

Discounts reduce your selling price, which reduces profit. A 20% discount doesn't mean 20% less profit - it could wipe out profit entirely. If your margin is 25% and you discount 20%, your new margin is only 5% (or less, depending on calculation method).

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