Profit Calculator
Find out exactly what an order earns you. Enter your cost per unit, your selling price, the quantity and any extra costs such as packing or courier, and see revenue, total cost, profit, margin and markup together.
Useful before you accept a bulk order, quote a client, or list a product on a marketplace where commission eats into your margin.
Packing, shipping, commission, GST paid on expenses, etc.
Profit summary
- Revenue
- ₹7,500.00
- Total cost
- ₹5,000.00
- Profit per unit
- ₹250.00
- Profit margin
- 33.33%
- Markup
- 50%
- Profit
- ₹2,500.00
Formula
Revenue = Selling price × Quantity
Total cost = (Purchase price × Quantity) + Additional costs
Profit = Revenue − Total cost
Profit margin % = Profit ÷ Revenue × 100
Markup % = Profit ÷ Total cost × 100
Worked example
A shop buys 10 units at ₹500 each and sells them at ₹750 each with no extra costs.
- Revenue: ₹7,500.00
- Total cost: ₹5,000.00
- Profit: ₹2,500.00
- Profit margin: 33.33%
- Markup: 50%
Add ₹500 of courier charges and profit falls to ₹2,000 with a 26.67% margin — which is why extra costs belong in the calculation.
How to use this calculator
- 1Enter your total cost — purchase price plus freight, packing and any other landed cost.
- 2Enter the selling price you charge the customer, excluding GST.
- 3Read the profit in rupees and the profit percentage on both cost and revenue.
When businesses use it
- Deciding whether a product line is worth restocking after freight went up.
- Comparing two suppliers where one is cheaper but ships in smaller lots.
- Checking a single order's profit before you agree to a client's rate.
Gross profit, net profit and what they tell you
Revenue minus cost gives profit, but the answer only means something once you are clear which costs you subtracted. Gross profit removes only the direct cost of what you sold — materials, purchase price, freight inward, direct labour — and measures whether the product itself works. Net profit goes further and removes rent, salaries, marketing, interest and depreciation, showing whether the business as a whole works.
A business can have a healthy gross profit and still lose money, which is the usual pattern for shops and agencies that grew their overheads faster than their sales. Reading the two numbers together tells you which lever to pull: a weak gross number means pricing or purchasing has to change, while a weak net number with a strong gross number points at fixed costs.
Track the profit percentage rather than the rupee figure when you compare months. A ₹2 lakh profit on ₹10 lakh of sales is a very different business from ₹2 lakh on ₹40 lakh, and only the percentage exposes the difference.
Costs businesses forget to subtract
- Owner's salary, even when it is drawn irregularly.
- Payment gateway and marketplace commission on every order.
- Freight, packing and returns on online sales.
- Interest on working capital and the GST you cannot claim as credit.
Price a product from a target profit
If you already know the margin you need, work backwards with the margin & markup calculator, then add tax to the final figure using the GST calculator.
Learn the maths behind it
- How to calculate profit margin
Margin % = (Selling price − Cost) ÷ Selling price × 100 — always measured against revenue, not cost.
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