Profit & Loss Calculator
Calculate profit margin, markup percentage, ROI, and break-even analysis. Essential for business planning, trading, and investment decisions.
Enter Business Details
Financial Breakdown
Profit Margin Comparison
| Margin % | Profit (₹10k Rev) | Selling Price (₹6k Cost) | ROI (₹50k Inv) |
|---|
Business Insights
A 40% profit margin is excellent for most businesses. Consider increasing volume or reducing costs to improve profitability further.
Key Financial Metrics
Profit Margin
Percentage of revenue that turns into profit after accounting for all costs.
Markup Percentage
Percentage added to cost price to determine selling price.
Return on Investment (ROI)
Measure of profitability relative to the investment amount.
Break-even Point
Point where total revenue equals total costs (no profit, no loss).
About Profit & Loss Calculations
The Profit & Loss Calculator helps businesses and individuals analyze profitability, calculate margins, determine optimal pricing, and perform break-even analysis for better financial decision-making.
How Profit & Loss Calculations Work
Gross Profit Calculation
Gross Profit = Total Revenue - Cost of Goods Sold (COGS)
Gross Margin = (Gross Profit ÷ Revenue) × 100
Net Profit Calculation
Net Profit = Gross Profit - Operating Expenses - Taxes
Net Margin = (Net Profit ÷ Revenue) × 100
Markup Calculation
Selling Price = Cost Price × (1 + Markup Percentage ÷ 100)
Markup % = ((Selling Price - Cost Price) ÷ Cost Price) × 100
Break-even Analysis
Break-even Units = Fixed Costs ÷ (Price per Unit - Variable Cost per Unit)
Break-even Revenue = Break-even Units × Price per Unit
Industry Profit Margin Benchmarks
Retail Industry
- Grocery Stores: 2-3% net margin
- Electronics: 10-15% net margin
- Clothing: 4-13% net margin
- Jewelry: 25-40% net margin
Technology Industry
- Software/SaaS: 20-30% net margin
- Hardware: 5-10% net margin
- IT Services: 10-15% net margin
- E-commerce: 5-15% net margin
Food Industry
- Restaurants: 3-5% net margin
- Fast Food: 6-9% net margin
- Catering: 7-8% net margin
- Food Trucks: 6-9% net margin
Manufacturing
- Auto Manufacturing: 5-10% net margin
- Pharmaceuticals: 15-20% net margin
- Consumer Goods: 10-15% net margin
- Textiles: 5-10% net margin
Profitability Calculation Examples
| Revenue | Cost | Profit | Margin % | Markup % | ROI % |
|---|---|---|---|---|---|
| ₹1,00,000 | ₹70,000 | ₹30,000 | 30% | 42.86% | 15% |
| ₹50,000 | ₹30,000 | ₹20,000 | 40% | 66.67% | 20% |
| ₹2,00,000 | ₹1,60,000 | ₹40,000 | 20% | 25% | 10% |
| ₹25,000 | ₹15,000 | ₹10,000 | 40% | 66.67% | 25% |
Tips for Improving Profitability
- Reduce Costs: Negotiate with suppliers, optimize inventory, reduce waste
- Increase Prices: Gradually increase prices while maintaining value perception
- Upsell & Cross-sell: Increase average transaction value with complementary products
- Improve Efficiency: Automate processes, reduce labor costs through technology
- Focus on High-Margin Products: Identify and promote products with best margins
- Customer Retention: It costs 5-25x more to acquire new customers than retain existing ones
- Monitor Key Metrics: Regularly track gross margin, net margin, and customer lifetime value