# Profit Calculator

URL: https://speedycalculator.com/calculators/finance/profit/
Last updated: 2026-10-25

> The profit calculator works out profit, profit margin and markup from revenue and costs – or from price, cost per unit and quantity – so you can see what a product or business really earns.

## Inputs

- Price per unit
- Cost per unit
- Quantity sold
- Fixed costs

## Results

- Revenue
- Total costs
- Profit
- Profit margin
- Markup on total cost
- Contribution per unit

## Formula

```
Revenue = price × quantity
Profit = revenue − total costs
Profit margin = profit ÷ revenue; markup = profit ÷ cost
```

## Explanation

Profit is what remains after all costs. For pricing decisions look at contribution per unit (price − variable cost) as well as overall profit after fixed costs.

### How to use the Profit Calculator

- **Price per unit**
- **Cost per unit**
- **Quantity sold**
- **Fixed costs**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the price per unit, cost per unit, quantity sold and any fixed costs.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterPrice per unitAmount in your currencyCost per unitAmount in your currencyQuantity soldA numberFixed costsAmount in your currency

### What each result means

- **Revenue** = [Price per unit]×[Quantity sold]
- **Total costs** = [Cost per unit]×[Quantity sold] + [Fixed costs]
- **Profit** = [Revenue] - [Total costs]
- **Profit margin** = [Profit]÷[Revenue]×100
- **Markup on total cost** = [Profit]÷[Total costs]×100
- **Contribution per unit** = [Price per unit] - [Cost per unit]

### Example values

How the main result changes when **Price per unit** changes and everything else stays at the example values above:

Price per unitProfit12.5-13,00018.75-5002512,00031.2524,50037.537,0005062,000

## Worked example

Inputs — Price per unit: $25; Cost per unit: $15; Quantity sold: 2,000; Fixed costs: $8,000.

Results — Revenue = $50,000.00; Total costs = $38,000.00; **Profit = $12,000.00**; Profit margin = 24 %; Markup on total cost = 31.58 %; Contribution per unit = $10.00.

## FAQ

**How do I calculate profit?**
Revenue minus all costs.

**What is the difference between profit and revenue?**
Revenue is total sales; profit is what's left after costs.

**What is contribution per unit?**
Price minus variable cost per unit – it pays for fixed costs and profit.

**What formula does the Profit Calculator use?**
Revenue = price × quantity.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)