$
%
$
$
Profit Calculator – Gross & Net Profit
The Profit Calculator helps you calculate gross profit, net profit, and profit margin for your business or project. It’s essential for business planning, pricing strategies, and financial analysis.
What is a Profit Calculator?
A Profit Calculator determines how much money you make after subtracting costs from your revenue. It can calculate different types of profit including gross profit (before expenses) and net profit (after expenses).
How to Use the Profit Calculator
- Enter your total revenue.
- Enter the cost of goods sold (COGS).
- Optionally enter operating expenses for net profit calculation.
- Click "Calculate" to see gross profit, net profit, and profit margin.
Profit Calculation Formulas
- Gross Profit = Revenue - Cost of Goods Sold (COGS)
- Net Profit = Revenue - COGS - Operating Expenses
- Profit Margin (%) = (Profit / Revenue) × 100
Example:
Revenue = $10,000
COGS = $6,000
Expenses = $2,000
Gross Profit = $10,000 - $6,000 = $4,000
Net Profit = $10,000 - $6,000 - $2,000 = $2,000
Profit Margin = ($2,000 / $10,000) × 100 = 20%
Key Features
- Calculate both gross and net profit
- Determine profit margin in percentage
- Helps with pricing strategy and cost analysis
- Useful for small businesses, startups, and freelancers
Benefits of Using a Profit Calculator
- Quickly assess business profitability
- Make informed financial decisions
- Improve pricing and budgeting strategies
- Plan expenses and track margins
Use Cases
- Small business owners analyzing monthly performance
- Freelancers calculating earnings after costs
- Online sellers evaluating product margins
- Startups creating financial projections
Related Calculators
FAQs About Profit Calculator
1. What is the difference between gross and net profit?
Gross profit is revenue minus COGS. Net profit is what remains after subtracting all expenses including operating costs.
2. What is a good profit margin?
It depends on the industry. Generally, a 10% margin is average, 20% is good, and 5% is low.
3. Can I use this calculator for a product-based business?
Yes, especially helpful to evaluate cost, selling price, and resulting profits for each product.
4. Does it include taxes?
No, this calculator does not account for tax deductions. You should subtract tax separately from your net profit.
5. Can I use this for multiple months?
Yes, you can calculate profits for any time frame by entering total revenue and costs for that period.
Conclusion
The Profit Calculator is a powerful tool for understanding and improving your business's financial health. Whether you're pricing a product or analyzing your yearly earnings, it provides accurate and fast results.