What Is a Profit and Loss Calculator?
A profit and loss calculator helps you determine whether a transaction results in a profit or a loss. It uses the cost price and selling price to calculate the difference and the corresponding percentage.
What Is Cost Price?
Cost price is the amount paid to purchase or produce a product or item before it is sold.
What Is Selling Price?
Selling price is the amount received when a product or item is sold.
Profit Formula
When the selling price is higher than the cost price, the transaction results in a profit.
Profit = Selling Price − Cost Price
Profit Percentage = (Profit ÷ Cost Price) × 100
Loss Formula
When the selling price is lower than the cost price, the transaction results in a loss.
Loss = Cost Price − Selling Price
Loss Percentage = (Loss ÷ Cost Price) × 100
Profit Example
If an item costs ₹1,000 and is sold for ₹1,200, the profit is ₹200.
Profit percentage = ₹200 ÷ ₹1,000 × 100 = 20%.
Loss Example
If an item costs ₹1,000 and is sold for ₹800, the loss is ₹200.
Loss percentage = ₹200 ÷ ₹1,000 × 100 = 20%.
Frequently Asked Questions
How is profit calculated?
Profit is calculated by subtracting the cost price from the selling price when the selling price is higher.
How is loss calculated?
Loss is calculated by subtracting the selling price from the cost price when the cost price is higher.
Is this calculator free?
Yes. Toolveta's profit and loss calculator is free to use and does not require registration.
Can I use this calculator on mobile?
Yes. The calculator works on mobile phones, tablets and desktop computers.