About this calculator
The Profit Calculator works out how much profit you make on a sale, based on your cost and selling price, whether you're pricing a single item or a batch.
How is profit calculated?
Profit is simply the difference between what you sell something for and what it cost you: Profit = Price − Cost. When selling multiple units, total cost and total price are each multiplied by quantity first, and the profit is the difference between those totals.
Profit vs. profit margin
Profit is a dollar (or currency) amount, while profit margin expresses that profit as a percentage of the selling price — which makes it easier to compare profitability across products with very different price points. Selling something for $10 profit sounds good until you realize it cost $990, giving a margin of just 1%.
Why track profit per unit?
Knowing your profit per unit (rather than just total revenue) is essential for pricing decisions, understanding which products are actually worth selling, and figuring out how sales volume needs to change to hit a target income.