Profit and Loss Calculator
Enter the cost price and the selling price to see whether you made a profit or a loss, and by what percentage of cost.
Quick answer. Profit equals selling price minus cost price. Profit percentage equals profit divided by cost price, multiplied by 100.
The formulas
Profit or loss equals selling price minus cost price. A negative result is a loss.
Percentage equals profit or loss divided by cost price, multiplied by 100.
Worked example, profit
Cost price is 800. Selling price is 1,000. Profit is 200.
Percentage is 200 divided by 800, multiplied by 100, which is 25 percent of cost.
Worked example, loss
Cost price is 500. Selling price is 450. The result is a loss of 50.
Percentage is minus 50 divided by 500, multiplied by 100, which is a loss of 10 percent of cost.
Common mistakes
Calculating the percentage on selling price instead of cost. Margin on selling price is a different figure.
Forgetting other costs such as shipping, packaging, platform fees and tax. Include them in cost price for a true result.
Profit and loss in a business
A sale is profitable only when the selling price is higher than the total cost of the item. Total cost includes purchase price and direct costs such as freight, packaging, storage and payment fees.
A business with several products should calculate profit for each product line, because a high margin on one item can hide a loss on another.
Example with a loss
Cost price is 1,500 and selling price is 1,200. The difference is minus 300, which is a loss of 300.
The percentage is minus 300 divided by 1,500, multiplied by 100, which is minus 20 percent. The loss is 20 percent of cost.
Common mistakes
Forgetting that discounts reduce the selling price. Calculate profit after the discount you actually gave the customer.
Comparing a percentage on cost with a percentage on selling price. Always check which base a percentage uses before you compare two figures.
Questions
Why is margin different from markup?
Markup is calculated on cost. Margin is calculated on selling price. This calculator shows the percentage on cost price.
Why does it show N/A?
A percentage cannot be calculated when cost price is zero, because the formula divides by cost.
What is the difference between profit percentage and profit margin?
Profit percentage uses cost as the base. Profit margin uses selling price as the base. This calculator shows profit percentage on cost.
How do I include shipping?
Add shipping, packaging and platform fees to the cost price before you calculate.
Last updated: 2026-10-08. Standard accounting formulas for profit and percentage on cost. Formulas checked against the stated method.