Enter cost price and selling price to instantly calculate profit percentage, profit amount, and see the step-by-step formula applied.
Profit percentage expresses how much you earned relative to what you paid. It is calculated on the cost price — not the selling price. This is the key distinction between profit percentage (markup) and profit margin.
| Profit | Selling Price − Cost Price |
| Profit Percentage | (Profit ÷ Cost Price) × 100 |
| Profit Margin | (Profit ÷ Selling Price) × 100 |
| Selling Price from target % | Cost Price × (1 + Profit% ÷ 100) |
If the selling price is lower than the cost price, the result is negative — meaning a loss. The same formulas apply; the calculator will display this clearly as a loss percentage and loss amount.
People often confuse profit percentage with profit margin, but they measure different things. Profit percentage (also called markup) divides the profit by the cost price. Profit margin divides the profit by the selling price. This means a profitable transaction will generally produce a higher markup number than margin number.
Example: You buy a product for 400 and sell it for 500. The profit is 100. Profit percentage = 100 ÷ 400 × 100 = 25%. Profit margin = 100 ÷ 500 × 100 = 20%. Both describe the same deal, but from different reference points.
Retail markup
A shop buys a pair of shoes for 800 and sells them for 1 200. Profit = 400. Profit percentage = 400 ÷ 800 × 100 = 50%. For every unit of cost, the shop earns half a unit in profit.
Selling at a loss
A phone bought for 6 000 is sold for 5 000 in a clearance sale. Loss = 1 000. Loss percentage = 1 000 ÷ 6 000 × 100 = 16.67%. The seller lost about one-sixth of the original cost.
Target pricing
A baker's cost per cake is 120. She wants a 40% profit. Selling price = 120 × (1 + 40/100) = 168. Her profit per cake is 48.
"From Prices" is the mode you need after a transaction, when you already know what you paid and what you sold (or plan to sell) for. It tells you the profit percentage you actually achieved.
"From Target Profit %" works in the opposite direction. Enter your cost and the profit margin you want to hit, and the calculator gives you the exact selling price needed. This is useful when setting prices for products or preparing quotes.
This calculator uses standard profit/loss formulas taught in business mathematics. It computes simple profit percentage based on cost price and selling price — it does not account for taxes, operating expenses, discounts, or other business costs. For complete financial analysis, consult an accountant or financial advisor.