Simply enter the cost price and selling price in this profit calculator to quickly determine the profit of a good or item. The profit percentage is also calculated using this calculator.
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Profit is the amount of money made when a good or service is sold for more than it cost to produce.
Imagine that you are a store owner. You spend $60 on a box of 12 coke bottles that you purchase from the manufacturer. Therefore, a single bottle of Coca-Cola will cost you $5.
These Coca-Cola bottles cost $6 each in your store. Each bottle generates $1 in profit. This is referred to as the profit from selling that specific good or service.
How to Use the Profit Calculator?
- It’s really easy to use this profit calculator.
- Simply enter the cost price and selling price of the item in this calculator to determine the profit.
- The profit and profit % from the provided inputs will be displayed by the calculator.
Formula to Calculate Profit and Profit Percentage
The following formulas are used to determine the profit and its percentage made from selling products or services:
How is the Profit Calculated?
Profit is calculated by the subtraction of the cost price from the selling price. Any item that can be sold has its profit amount calculable. This can include services as well as goods, products, and items. Below are some real-world cases that have been solved and show you step-by-step how to compute profit.
Example
1. The store owner purchases a bundle of notebooks for $50 from the manufacturer and sells it for $70. How much profit did he make when he sold the bundle of notebooks?
Solution :
Cost price of notebook bundle = $50
Selling price of notebook bundle = $70
Using the profit formula,
Profit = Selling price – Cost price
Profit = 70 – 50
Profit = $20
The profit generated on selling the notebooks bundle is $20.
Example
2. Jack sold his bicycle, which he had purchased a week earlier, for a profit of $50. The bicycle was $99 in price. How much did Jack sell his bicycle for?
Solution:
Cost price of notebook bundle = $99
Selling price of notebook bundle = ?
Profit gained = $50
Don’t be confused; in this example, the profit is given, and our task is to determine the bicycle’s selling price. We can accomplish that with ease simply by slightly altering the formula.
Using the profit formula,
Profit = Selling price – Cost price
Selling price = Profit + Cost price
Selling price = 50 + 99
Profit = $149
Jack’s sold his Bicycle for $149.
How is Profit Percentage Calculated?
You learnt how to compute the profit in the stage above. Calculating the profit percentage is relatively simple once you are aware of the profit amount. With simple examples from everyday life, we have easily explained this.
Example
1. Nikki purchased a smartwatch for $99 online and sold it to a friend for $120. What is the profit and what is the profit percentage?
Solution:
Cost price of the smartwatch = $99
Selling price of the smartwatch = $120
Using the profit formula,
Profit = Selling price – Cost price
Profit = 120 – 99
Profit = $21
We can easily calculate the profit percentage now that we know how much profit nikki made.
Using the profit percentage formula,
Profit Percentage = (Profit/ Cost price) x 100
Profit Percentage = (21/ 99) x 100
Profit Percentage = 21.21%
The profit earned in the deal is of $21 and the profit percentage is 21.21%.