Profit Percentage Calculator | With Formula Breakdown
Enter cost price and selling price to instantly calculate profit percentage, profit amount, and see the step-by-step formula applied.
Enter cost price and selling price to instantly calculate profit percentage, profit amount, and see the step-by-step formula applied.
How the Profit Percentage Formula Works
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.
Profit Percentage vs. Profit Margin — What's the Difference?
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.
Quick Examples
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.
When to Use Each Calculator Mode
"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.
Frequently Asked Questions
What is the formula for profit percentage?
Profit Percentage = (Profit ÷ Cost Price) × 100, where Profit = Selling Price − Cost Price. The result tells you how much you earned per unit of cost, expressed as a percentage.
Can profit percentage be more than 100%?
Yes. If you sell something for more than double what you paid, the profit percentage exceeds 100%. For example, buying at 200 and selling at 500 gives a profit of 300, which is 150% of the cost.
Is profit percentage the same as profit margin?
No. Profit percentage (markup) is based on cost price, while profit margin is based on selling price. For the same transaction, markup is always a higher number than margin. Both are useful — margin is more common in financial reporting, while markup is common in retail pricing.
What does a negative result mean?
A negative result means the selling price is below the cost price — in other words, a loss. The calculator displays this as a loss percentage and loss amount so you can see the shortfall clearly.
How do I find selling price from cost price and desired profit?
Use the formula: Selling Price = Cost Price × (1 + Profit% ÷ 100). Or switch to "From Target Profit %" mode in the calculator above — enter your cost and desired percentage, and it computes the selling price for you.
Does this calculator work for any currency?
Yes. The formulas are currency-agnostic — they work with any unit of money. Enter your values in whatever currency you use and the results will be in that same currency.