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Profit Calculator

Profit Calculator - a browser-based finance utility.

Browser tool

About Profit Calculator

Net profit, margin and markup from revenue and costs, with the loss case handled properly rather than shown as a negative that needs interpreting. Useful for checking a quote before you send it, and for checking what a job actually returned after you have been paid. Free, with no sign-in demanded. Margins are worked out locally, so your pricing stays commercially private.

How to use it

  1. Enter revenue and total costsProfit, net margin and markup are all derived from those two figures, so the answer is only as good as the cost side of it.
  2. Read the margin, not just the profitTwo jobs can return the same profit on very different revenue. The margin is what tells you which one was worth the effort, and which one you should price differently next time.
  3. Check the loss case honestlyWhen costs exceed revenue the result is a negative profit and a negative margin, both reported as such. A quote that shows a loss here is a quote to revise, not to round up.

Which profit are you calculating?

Gross profit subtracts only the direct cost of delivering the thing sold. Operating profit also subtracts the overheads of running the business — premises, software, insurance. Net profit subtracts everything, including tax and interest. This page calculates whichever of those you have entered the costs for, so the label you give the answer should match what you actually put in.

What it does not do

  • Whether this is gross or net profit depends entirely on which costs you include. Leaving out your own time is the most common omission and the one that makes an unprofitable job look fine.
  • Margin is undefined at zero revenue, and the calculator says so instead of returning zero.

Questions people ask

What counts as a cost here?
Whatever you enter. For a net figure worth trusting, count materials, subcontractors, payment fees, shipping — and put an honest price on the hours you spent.
Why is my margin lower than my markup?
They are ratios against different bases — margin against revenue, markup against cost — so for any profitable sale the margin is always the smaller number.

Questions about ToolsVerse itself — privacy, cost, what happens to your files — are answered in the frequently asked questions.

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