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Profit Calculator

Find your real profit on a product or batch of sales. Enter cost price, selling price and units sold, add other expenses like shipping, packaging or marketplace fees, and see your net profit, margin and the break-even price.

Last reviewed:

Shipping, packaging, marketplace fees, ads — anything not already in cost price.

Net profit

₹12,000.00

21.82% net margin

Revenue
₹55,000.00
Cost of goods
₹40,000.00
Gross profit
₹15,000.00
Other expenses
₹3,000.00
Net profit
₹12,000.00
Net margin (on revenue)
21.82%
Return on total cost
27.91%
Profit per unit
₹120.00
Break-even selling pricePrice per unit where net profit is zero
₹430.00

How to use the Profit Calculator

  1. Enter the cost price and selling price per unit (both excluding GST, if you are registered).
  2. Enter the number of units sold.
  3. Add any other expenses for this batch that are not already in the cost price.

Formula

Formula

Revenue = Selling price × Units

Net profit = Revenue − (Cost price × Units) − Other expenses

Net margin % = Net profit ÷ Revenue × 100

Break-even price = (Cost price × Units + Other expenses) ÷ Units

Gross profit vs net profit

Gross profit is revenue minus the cost of the goods sold. Net profit also subtracts the other expenses of making those sales — delivery charges, packaging, platform commission, payment gateway fees and advertising. Many sellers look only at gross profit and are surprised when the bank balance doesn't match.

Why the break-even price matters

The break-even price is the lowest selling price at which you don't lose money on this batch. Any discount or price cut below it turns the sale into a loss. For fixed business costs like rent and salaries, see the Break-even Calculator.

Worked example

100 units bought at ₹400 and sold at ₹550, with ₹3,000 shipping and fees

  1. Revenue = 550 × 100 = ₹55,000
  2. Cost of goods = 400 × 100 = ₹40,000 → gross profit ₹15,000
  3. Net profit = 15,000 − 3,000 = ₹12,000
  4. Net margin = 12,000 ÷ 55,000 = 21.82%
  5. Break-even price = (40,000 + 3,000) ÷ 100 = ₹430

Net profit ₹12,000 (21.82% margin); do not sell below ₹430

Important notes

  • If you are GST-registered, use prices excluding GST. The GST you collect is not your income.
  • Return-on-cost is shown for reference; it equals markup when there are no other expenses.

Frequently asked questions

How do I calculate profit percentage?

Profit percentage is usually calculated on cost: profit ÷ cost × 100. Buying at ₹400 and selling at ₹500 is a 25% profit on cost. As a margin on the selling price, the same sale is 20%.

What counts as 'other expenses'?

Anything you spend to make these specific sales that isn't in the purchase cost: courier charges, packaging, marketplace commission, payment gateway fees, and ad spend for the product.

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