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
| Field | What to enter |
|---|---|
| Price per unit | Amount in your currency |
| Cost per unit | Amount in your currency |
| Quantity sold | A number |
| Fixed costs | Amount 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 unit | Profit |
|---|---|
| 12.5 | -13,000 |
| 18.75 | -500 |
| 25 | 12,000 |
| 31.25 | 24,500 |
| 37.5 | 37,000 |
| 50 | 62,000 |
Formula
Revenue = price × quantityProfit = revenue − total costsProfit margin = profit ÷ revenue; markup = profit ÷ costWorked 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.
Frequently asked questions
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.