Business calculator

Profit Calculator

Calculate revenue, variable costs, fixed costs, total costs, net profit and profit margin for a product line, sales batch or accounting period. Enter the average selling price, quantity and all costs that belong to the same scope. The calculator keeps unit costs, other variable costs and fixed overhead visible so the result is transparent and easy to audit. It is intended for planning and scenario analysis; accounting, tax and cash-flow results may differ when timing, depreciation, inventory valuation, refunds or taxes are included.

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Selling Price

Average selling price received per unit before the costs entered below. Quantity

Number of units sold in the same period or batch. Unit Cost

Direct product or service cost for one unit. Shipping Cost

Total shipping and fulfillment cost for the period or batch. Payment Fees

Total card, wallet, marketplace or payment processing fees. Advertising Cost

Total advertising and promotion spend attributed to these sales. Other Variable Costs

Other costs that rise with sales, such as packaging, commissions or returns. Fixed Costs

Costs that do not change directly with quantity, such as rent, salaries or software.

Estimate only. Platform fees, taxes and policies vary by country, account, category and date. Verify important decisions against your current statement or official fee schedule.

Revenue —

Variable Costs —

Fixed Costs —

Total Costs —

Profit —

Profit Margin —

Calculator guide

Build a complete profit estimate

Choose a clear scope before entering data. You can model one order batch, one month, one campaign or another period, but every revenue and cost input must refer to that same scope. Mixing annual fixed costs with monthly sales will distort profit.

Revenue is selling price multiplied by quantity. Use the amount the business actually earns after ordinary discounts and refunds when those adjustments are material. Do not treat sales tax collected for a tax authority as operating revenue unless your accounting method requires it.

Unit cost is multiplied by quantity. Shipping, payment fees, advertising and other variable costs are entered as totals for the chosen scope. Fixed costs are added afterward. Avoid double-counting a cost in both unit cost and another field.

Profit margin is profit divided by revenue. A negative profit produces a negative margin, correctly showing that total costs exceeded revenue. When revenue is zero, the calculator reports a zero margin to avoid division by zero; review the profit amount itself in that case.

Use scenario analysis for decisions. Compare the expected case with lower quantity, lower price, higher unit cost and higher advertising spend. The calculator measures profitability, not cash timing, so also review cash flow and working capital where payment dates matter.

Formula

Profit calculation explained

The calculation first determines sales revenue, then groups variable and fixed costs before calculating profit and margin.

Multiply selling price by quantity to calculate revenue.
Multiply unit cost by quantity.
Add shipping, payment fees, advertising and other variable costs.
Add fixed costs to obtain total costs.
Subtract total costs from revenue.
Divide profit by revenue and multiply by 100 for profit margin.

Worked example

Profit example for 100 units

Inputs

Selling price: $50.00
Quantity: 100
Unit cost: $20.00
Shipping: $300.00
Payment fees: $150.00
Advertising: $500.00
Other variable costs: $0.00
Fixed costs: $1,000.00

Results

Revenue: $5,000.00
Variable costs: $2,950.00
Total costs: $3,950.00
Profit: $1,050.00
Profit margin: 21.00%

The example earns $10.50 profit per unit after all entered variable and fixed costs.

Frequently asked questions

Profit Calculator FAQ

What is the formula for profit?

Profit equals revenue minus total costs. In this calculator, revenue is selling price multiplied by quantity. Total costs include unit cost multiplied by quantity, shipping, payment fees, advertising, other variable costs and fixed costs.

What is the difference between profit and revenue?

Revenue is the amount earned from sales before costs. Profit is what remains after subtracting all costs included in the calculation. A business can have high revenue and still record a loss when its total costs are higher.

How is profit margin calculated?

Profit margin equals profit divided by revenue, multiplied by 100. It shows how much of each sales dollar remains as profit after the entered costs. When revenue is zero, a meaningful percentage cannot be calculated.

Should shipping be entered per unit or as a total?

Shipping cost is entered as a total for the quantity and period being modeled. If you only know shipping per unit, multiply it by quantity first or include it in unit cost, but do not count it in both places.

Are payment fees variable costs?

Payment and marketplace fees usually rise with sales volume, so they are treated as variable costs here. Enter the total fee amount for the modeled sales. Use a separate fee calculator first when fees include percentages, fixed charges or tiers.

Can the calculator show a loss?

Yes. When total costs exceed revenue, profit and profit margin become negative. A negative result is not an error; it indicates that the entered price, sales volume and cost structure do not cover the selected costs.

Does profit equal cash flow?

No. Profit measures revenue minus expenses under the assumptions entered, while cash flow also depends on when customers pay, when bills are paid, inventory purchases, loans, capital spending and other cash movements.

Should taxes be included in profit?

This calculator does not add income tax automatically. Include a tax amount only when it is part of the profit definition you want to model. Tax treatment varies by country and entity, so confirm reporting decisions with a qualified professional.

Primary sources

Official references and further reading

U.S. SEC — Beginners’ guide to financial statements ↗

Official explanation of income statements, revenue, expenses and net income.

U.S. SEC — Small business glossary: net income ↗

Official definition of net income as revenues and gains less expenses.

IRS — Guide to business expense resources ↗

Official resources for identifying and reporting business expenses.

IRS — Schedule C, Profit or Loss From Business ↗

Official form information for reporting sole-proprietor business income or loss.

Editorially reviewed: 2026-07-21

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