Business & Finance
Profit, Loss & Markup Calculator
Enter the cost price and selling price for one unit, then add a quantity if you want total figures. The calculator shows whether the sale creates a profit or loss and separates markup from profit margin so the two percentages are not confused.
Calculator
The calculation runs in your browser.
What is a Profit, Loss & Markup Calculator?
A profit, loss and markup calculator helps you compare cost price with selling price and see the result in both money and percentage terms. It is especially useful for commerce students and simple pricing checks because it keeps markup and profit margin separate: markup is measured against cost, while margin is measured against sales revenue.
Formula and calculation method
Profit per unit = selling price − cost price. Loss per unit = cost price − selling price when cost is higher. Profit or loss percentage = difference ÷ cost price × 100. Markup = profit ÷ cost price × 100. Profit margin = profit ÷ selling price × 100.
What this calculator does
This calculator separates five ideas that are often mixed together: profit, loss, profit percentage, markup and profit margin. It starts with per-unit cost and selling price, then scales the figures by quantity so a student can see both the formula and the commercial effect.
How to interpret the result
Start with the profit or loss per unit, then look at the percentage that answers your question. Use markup when you want to know how far the selling price sits above cost. Use margin when you want to know what share of sales revenue remains as gross profit before other expenses. A positive percentage does not by itself prove a product is worthwhile, because costs outside the unit price may still matter.
Assumptions
- Cost price and selling price are entered on the same tax basis and in the same currency.
- Each unit has the same cost and selling price across the quantity entered.
- The calculation treats the entered cost price as the full cost base for the percentage formulas.
Limitations
- Does not automatically add shipping, platform fees, payment fees, discounts, tax, returns or general overheads.
- Does not model changing prices or costs across multiple batches of stock.
- Gross profit from a product is not the same as final business net profit after operating expenses and taxes.
How it works
Profit or loss per unit is selling price minus cost price. Profit percentage and markup both use cost price as the base, while profit margin uses selling price as the base. That is why a 25% markup does not mean a 25% margin. Quantity multiplies the per-unit cost, sales and profit or loss to show totals.
Worked example
Suppose an item costs 100 and sells for 125. Profit is 25 per unit. Profit percentage and markup are 25% because 25 is one quarter of the 100 cost price. Profit margin is 20% because the same 25 profit is one fifth of the 125 selling price. If 10 units are sold, total cost is 1,000, total sales are 1,250 and total profit is 250.
How to use it
- Enter the cost price for one unit. Include the costs you want the calculation to treat as part of that unit cost.
- Enter the actual or planned selling price for one unit.
- Leave quantity at 1 for a per-unit calculation, or enter the number of units to see totals.
- Optionally enter a target markup percentage to see the selling price that markup would imply.
- Press Calculate and compare profit percentage, markup and margin before using the result in an assignment or pricing decision.
Factors to consider
- A simple cost price may exclude delivery, marketplace fees, packaging, returns, staff time and overheads, so accounting profit can be lower than the calculator result.
- Markup and margin use different denominators. Markup divides profit by cost price; margin divides profit by selling price.
- When selling price is below cost price, the result is a loss. Profit margin is then negative, while markup is also negative.
- Taxes can be included or excluded from prices depending on the context. Use figures on the same basis so the comparison is meaningful.
Useful for
- Checking commerce or business-mathematics exercises involving cost price and selling price.
- Comparing a planned selling price with a target markup.
- Explaining why markup and margin produce different percentages from the same transaction.
- Estimating total gross profit or loss for a simple batch of identical units.
Profit and loss begin with the same subtraction
The first step is always to compare selling price with cost price. If selling price is higher, the difference is profit. If selling price is lower, the absolute difference is loss. Keeping that simple relationship clear prevents a common student mistake: applying a percentage before establishing whether the transaction actually gained or lost money.
Markup answers a pricing question; margin answers a revenue question
Markup asks how much has been added to cost. Margin asks how much of the selling price is left as gross profit. A shop that buys an item for 80 and sells it for 100 has added 20 to an 80 cost, so markup is 25%. The same 20 profit is 20% of the 100 selling price, so margin is 20%. Neither number is inherently more correct; they answer different questions.
Use totals carefully when quantity changes
Multiplying by quantity is useful when each unit is genuinely identical. Ten units bought for 100 each and sold for 125 each produce the same percentage as one unit, but the money amounts scale to 1,000 cost, 1,250 sales and 250 gross profit. If some units are discounted or have different purchase costs, calculate the batches separately or use weighted averages rather than assuming one price fits all.
Frequently asked questions
Is profit percentage the same as markup percentage?
In the common cost-based calculation used here, yes: both divide profit by cost price and multiply by 100. Some courses or businesses may use different terminology, so check the definition you are expected to use.
Why is profit margin lower than markup?
Because margin divides profit by the larger selling price, while markup divides the same profit by cost price. For example, cost 100 and selling price 125 gives a 25% markup but a 20% margin.
What happens if the selling price is lower than the cost price?
The calculator reports a loss. Loss percentage is the loss divided by cost price, multiplied by 100.
Should I include overheads in cost price?
For a classroom exercise, use the figures given in the question. For a real business decision, include the costs that are genuinely attributable to the product or separately account for overheads before treating the result as net profit.