How to use the Business Profit Calculator
Start with Calculation mode. Each mode shows the fields it needs, then places the formula, assumptions, and result in the Result section. Add a result to the scenario table when you want to compare it with another set of numbers.
- Choose a mode under Calculation mode.
- Set Period and Currency symbol for the result label.
- Enter the values shown for that mode.
- Click Calculate to show the formula, assumptions, and result.
- Click Add to scenario table for each result you want to compare.
How gross profit and net profit margin are calculated
Choose COGS & gross profit / margin, then enter Revenue and Cost of goods sold (COGS). The calculator subtracts COGS from Revenue for gross profit and divides that result by Revenue for gross margin.
Revenue: 50000
Cost of goods sold (COGS): 30000
Gross profit: 20000
Gross margin: 40%Net profit margin also uses Operating expenses / overhead. A blank Estimated tax rate % (optional) counts as 0. The entered tax rate is applied only when operating profit is positive, and costs can exceed Revenue.
Markup, margin, and break-even inputs
In Markup / margin pricing, enter Unit cost and Percentage, then choose I know my markup % or I know my target margin %. With a Unit cost of 40 and a 50% markup, the calculator returns a price of 60 and a 33.33% margin.
Unit cost: 40
Percentage: 50
I know my markup %
Price per unit: 60Break-even units & revenue uses Fixed costs, Price per unit, and Variable cost per unit. Variable cost per unit must be less than Price per unit. The difference is the contribution margin per unit used for the break-even calculation.
Periods, scenarios, and input limits
Period has Monthly, Quarterly, Annual, Per project, and Per unit. The selection labels results and scenario rows; it does not convert figures. In Break-even units & revenue, Fixed costs use the selected period, while Price per unit and Variable cost per unit remain per-unit values. Currency symbol changes the symbol only.
Project and billable hourly rate inputs
- Use COGS & gross profit / margin for Revenue and Cost of goods sold (COGS).
- Use Project profit for Project revenue, Direct / material costs, Labor hours, Labor rate per hour, and Allocated overhead.
- Use Billable hourly rate for Income target, Fixed / overhead costs, Total working hours, and Billable utilization %.
Choose a related business calculator
The Business Calculators category includes tools for profitability, pricing, marketing, SaaS, cash runway, and inventory. Choose the Break-Even Revenue Calculator for fixed costs, price per unit, variable cost per unit, and break-even output. Choose the Billable Hourly Rate Calculator for income, expenses, hours, and utilization. Choose the Project Profit Calculator for project revenue, labor, materials, overhead, and an optional estimated tax rate.
Revenue, Unit cost, Price per unit, Total working hours, and Billable utilization % must be above zero. Estimated tax fields can be blank or below 100%. A target margin must be below 100%, and Variable cost per unit must be less than Price per unit.
After a result exists, Copy result and Download result (.txt) use that result. Export scenario table (.csv) does nothing until a row has been added. Reset clears numeric inputs, restores Monthly, $, and the default markup choice, and leaves the scenario table intact. The calculation uses the values entered in the browser and makes no network request with them.
Frequently asked questions
How do I calculate gross profit and gross margin?
Choose COGS & gross profit / margin, enter Revenue and Cost of goods sold (COGS), and click Calculate. Gross profit is Revenue minus COGS, while gross margin is gross profit divided by Revenue.
How do I calculate net profit margin?
Choose Net profit margin and enter Revenue, Cost of goods sold (COGS), and Operating expenses / overhead. The optional tax field is applied only as an estimate when operating profit is positive.
What is the difference between markup and margin pricing?
Markup expresses the difference between price and cost as a percentage of cost. Margin expresses the same difference as a percentage of price, so the calculator asks which percentage you know.
How many units do I need to break even?
Enter Fixed costs, Price per unit, and Variable cost per unit in Break-even units & revenue. The calculator divides Fixed costs by the contribution margin per unit and also shows break-even revenue.
How is billable hourly rate calculated?
The calculator adds Income target to Fixed / overhead costs, adjusts for an optional tax set-aside, and divides by billable hours. Billable hours equal Total working hours multiplied by Billable utilization %.