Profit & Loss Calculator
Quickly calculate the net profit or loss, the return on investment (ROI), and the profit margin from a cost price and a selling price. The tool is intended for a single sale or a batch of identical items: quantity is optional and changes only the total amount, not the percentages.
Profit & Loss Calculator
Find the profit or loss amount, the return on investment (ROI), and the profit margin from a cost price and a selling price. Quantity is optional and scales the total only.
Result
Understanding profit and loss formulas
In business and trading, these are the standard formulas this calculator uses. ROI is the profit (or loss) as a percentage of the cost price. Profit margin is the same amount as a percentage of the selling price.
How to use the Profit & Loss Calculator
- Enter the cost price — the amount paid to buy or make the item, including shipping or manufacturing costs if you want a more complete figure.
- Enter the selling price — the amount the item was sold for.
- Optionally enter a quantity. Leave it blank to treat the quantity as 1. The ROI and margin stay the same; only the total amount is multiplied.
- Read the result: profit or loss, the amount per unit, the ROI, the profit margin, and the total if a quantity other than 1 was used.
Practical examples
Amount: 75 − 50 = 25. ROI: (25 ÷ 50) × 100 = 50%. Profit margin: (25 ÷ 75) × 100 = 33.333333%. For a quantity of 2, the total profit is 50. The percentages do not change.
Amount per unit: 60 − 80 = −20, a loss of 20. ROI: (−20 ÷ 80) × 100 = −25%. Profit margin: (−20 ÷ 60) × 100 = −33.333333%. Total loss for 3 units: −60.
If an item that cost 40 is given away, the amount is −40 and the ROI is −100%. Profit margin is undefined, because the amount would be divided by a selling price of 0.
When to use this calculator
- Checking a single product sale, a dropshipping order, or a small batch where every unit has the same cost and selling price.
- Separating ROI (relative to cost) from profit margin (relative to the selling price), which are often mixed up.
Common mistakes
- Using the selling price in the ROI denominator, or the cost price in the margin denominator. They are different percentages unless cost and selling price happen to be equal.
- Assuming a larger quantity changes the ROI. Quantity only scales the total amount.
Frequently asked questions
Is ROI the same as profit margin?
No. ROI divides the profit by the cost price. Profit margin divides the same profit by the selling price. A sale from 50 to 75 has a 50% ROI and a 33.333333% margin.
What if the cost price is 0?
The profit percentage (ROI) is undefined, because the change would be divided by zero. The calculator shows a plain-language error instead of Infinity.