Profit & Loss Calculator
Calculate profit, loss, profit percentage, and loss percentage instantly. Perfect for business analysis, trading, and financial planning.
Profit & Loss Calculator
How to Use This Calculator
Enter the Cost Price (CP) – the price at which you bought or made the product, and the Selling Price (SP) – the price at which you sold it. The calculator will determine if you made a profit or loss and calculate the percentage.
Understanding Profit and Loss
Profit occurs when Selling Price is greater than Cost Price (SP > CP). Loss occurs when Selling Price is less than Cost Price (SP < CP). No profit or loss when SP = CP. These calculations are fundamental in business and trading.
Formulas Used
Profit = SP – CP | Loss = CP – SP | Profit% = (Profit / CP) ร 100 | Loss% = (Loss / CP) ร 100. These formulas help you understand the actual and percentage gain or loss on your investment or transaction.
Common Applications
Used in retail business to calculate margins, stock trading to determine gains/losses, e-commerce pricing strategies, real estate investments, startup financial planning, and personal budgeting. Essential for any buying and selling activity.
Tips for Business
Always factor in additional costs like shipping, taxes, and overhead when calculating cost price. Set selling prices to achieve desired profit margins. Track profit percentages across products to identify best performers. Use historical data to optimize pricing strategies.
Frequently Asked Questions
Q: What’s a good profit margin? A: Varies by industry, typically 10-20% is healthy. Q: Can I have profit but negative cash flow? A: Yes, due to timing of payments. Q: What if SP = CP? A: Break-even, no profit or loss. Q: How to calculate markup? A: Markup% = (Profit/CP) ร 100.