KaroDesk

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 shipping, 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 fees eat into what you keep.

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Packing, shipping, commission, platform fees, and any tax on expenses you can't reclaim.

Profit summary

Total costProfit
Revenue
$7,500.00
Total cost
$5,000.00
Profit per unit
$250.00
Profit margin
33.33%
Markup
50%
Profit
$2,500.00
Margin is profit as a share of revenue. Markup is profit as a share of cost.

Selling 10 units nets $2,500.00 profit — a 33.33% margin on $7,500.00 revenue.

Smart next steps

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

An online shop buys 10 units at $50 each and sells them at $75 each, with no extra costs.

  • Revenue: $750.00
  • Total cost: $500.00
  • Profit: $250.00
  • Profit margin: 33.33%
  • Markup: 50%

Add $50 of shipping and profit falls to $200, a 26.67% margin. That's why extra costs belong in the calculation. The maths is the same in any currency: pick yours above the calculator.

How to use this calculator

  1. 1Enter your total cost: purchase price plus freight, packing and any other landed cost.
  2. 2Enter the selling price you charge the customer, excluding sales tax, VAT or GST.
  3. 3Read the profit amount 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 cash figure when you compare months. A $20,000 profit on $100,000 of sales is a very different business from $20,000 on $400,000, 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 any sales tax, VAT or GST on purchases you cannot reclaim.

Profit percentage: on price or on cost?

"Profit percentage" gets used for two different numbers, and mixing them up is a common pricing mistake. Take $1,000 of revenue, $600 of costs and $400 of profit:

  • Profit margin = 400 ÷ 1,000 = 40%. It's a share of what the customer paid, and it's the figure lenders, investors and accounts use.
  • Markup (profit on cost) = 400 ÷ 600 = 66.67%. It's a share of what you paid, and it's the figure traders use to price from cost.

The calculator shows both. When someone quotes a profit percentage, ask which base they mean. The markup vs margin guide explains how to convert one into the other.

Gross profit vs net profit, worked through

This calculator gives you gross profit on an order: revenue minus the direct costs of what you sold. Net profit subtracts the costs of running the business as well. Suppose a small online store has one month like this:

  • Revenue: $20,000
  • Cost of the goods sold, shipping and payment fees: $12,000
  • Gross profit: $8,000 (a 40% gross margin)
  • Rent, software, advertising and wages: $6,500
  • Net profit: $1,500 (a 7.5% net margin)

A healthy gross margin with a thin net margin points at overheads. A weak gross margin points at pricing or purchasing. Profit is also not the same as cash in the bank: check timing with the cash flow calculator.

Price a product from a target profit

If you already know the margin you need, work backwards with the margin & markup calculator, or build the full price, including tax, with the selling price calculator. To see how many orders like this you need to cover your fixed costs, use the break-even calculator.

Learn the maths behind it

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Frequently Asked Questions

Divide profit by the selling price and multiply by 100 for profit margin, or divide profit by cost and multiply by 100 for markup (profit on cost). Selling for $750 something that cost $500 is a $250 profit: 33.33% of the price, or 50% of the cost. Say which one you mean, because both get called "profit percentage".

Anything you spend to complete the sale beyond the purchase price: packing, shipping, platform or marketplace commission, card or payment fees, transport or labour. Enter the total for the whole order, not per unit.

Use prices excluding tax. Tax you collect from customers is passed on to the tax authority, so it isn't revenue. Tax you pay on purchases is only a cost if you can't reclaim it. If that's the case, add it to additional costs.

Revenue is everything the customer pays you. Profit is what's left after the costs of making that sale. $1,000 of revenue with $600 of costs is $400 of profit.

Your total cost is higher than revenue, usually because the selling price is below cost or the additional costs are large. The result card shows it as a loss.

No. Tax you collect from customers is not income: it passes through to the tax authority. Use prices before tax for both revenue and cost.

No. Credit sales, stock purchases and loan repayments all move cash without matching the profit figure. Check cash flow separately.

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