worldofcalcsProfit/Loss Calculator
Profit: ₹200.00
Percentage on cost: 25.00%
Margin on selling price: 20.00%
Profit and loss explained
You make a profit when you sell something for more than it cost you, and a loss when you sell it for less. This calculator gives the amount of profit or loss, the profit percentage on cost and the margin on the selling price, which are often confused.
Profit and loss formulas
Profit = SP − CP · Profit % = Profit ÷ CP × 100 · Margin % = Profit ÷ SP × 100
CP is the cost price and SP the selling price. If SP is less than CP, the difference is a loss, and loss % = loss ÷ CP × 100. Profit and loss percentages in school maths are always on the cost price; businesses often quote the margin on the selling price instead.
Useful shortcuts
- To sell at a given profit %, multiply the cost price by (1 + profit % ÷ 100). For 25% profit on ₹800, sell at ₹1,000.
- To find the cost from the selling price and profit %, divide: ₹1,000 ÷ 1.25 = ₹800.
- A 25% markup on cost is only a 20% margin on the selling price. Mixing the two is a common pricing mistake.
- Losing 20% and then gaining 20% doesn't get you back to where you started: ₹1,000 → ₹800 → ₹960.
- For a GST-registered business, work out profit on prices without GST, because the GST collected is paid to the government.
- Include every cost in CP, such as transport, packaging, platform fees and returns, or the profit will look bigger than it is.
Worked example
- A shopkeeper buys an item for ₹800 and sells it for ₹1,000
- Profit = ₹1,000 − ₹800 = ₹200
- Profit % on cost = 200 ÷ 800 × 100 = 25%
- Margin on selling price = 200 ÷ 1,000 × 100 = 20%
- If he had sold it for ₹800 after buying for ₹1,000, that would be a loss of ₹200, or 20%
Markup on cost vs margin on selling price
Selling prices for an item that costs ₹100.
| Profit % on cost (markup) | Selling price | Margin on selling price |
|---|---|---|
| 10% | ₹110 | 9.09% |
| 20% | ₹120 | 16.67% |
| 25% | ₹125 | 20% |
| 33.33% | ₹133.33 | 25% |
| 50% | ₹150 | 33.33% |
| 100% | ₹200 | 50% |
The margin is always lower than the markup, because it is measured against the higher selling price.