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Profit and loss calculator
Profit or loss, as a percentage of cost, from cost and selling price.
Quick answer
Profit is the selling price minus the cost price; a negative result is a loss. Formula: Profit = selling price − cost price (a negative result is a loss). Buying at ₹800 and selling at ₹1,000 gives a ₹200 profit, which is 25% of the cost.
Read the guide: How to calculate a discount and the final price
Profit
₹200.00
- Profit percentage (on cost)
- 25.00%
- Margin (on selling price)
- 20.00%
How is profit and loss calculated?
Profit percentage in school maths is on the cost price. Shopkeepers often quote margin, which is on the selling price, so the two figures differ.
If the selling price is below the cost price the result is a loss, shown with the same percentages.
To hit a target profit, work backwards: selling price = cost × (1 + profit%).
What is the formula for profit and loss?
- Profit = selling price − cost price (a negative result is a loss)
- Profit % = profit ÷ cost price × 100
- Margin % = profit ÷ selling price × 100
Can you show a worked example of profit and loss?
Cost ₹800, sold for ₹1,000: profit = ₹200. Profit % = 200 ÷ 800 × 100 = 25%. Margin = 200 ÷ 1,000 × 100 = 20%.
What are the profit, loss and margin for common prices?
Profit percentage is on the cost price. Margin is on the selling price. A negative margin is a loss.
| Cost price | Selling price | Profit or loss | Percentage on cost | Margin |
|---|---|---|---|---|
| ₹800 | ₹1,000 | ₹200 | 25% | 20% |
| ₹500 | ₹650 | ₹150 | 30% | 23.0769230769% |
| ₹250 | ₹300 | ₹50 | 20% | 16.6666666667% |
| ₹1,200 | ₹900 | −₹300 | −25% | -33.3333333333% |
Common questions
What is the difference between margin and markup?
Markup is profit on cost (25% in the example). Margin is profit on the selling price (20% in the example).
How do I find the selling price for a target profit?
Multiply the cost by (1 + profit% ÷ 100). For 25% on ₹800: 800 × 1.25 = ₹1,000.
Is loss percentage also on cost?
Yes, in standard school maths: loss ÷ cost price × 100.
Does it include expenses like rent?
No. Enter your total cost including any expenses to get true profit.