Profit and Loss Calculator

How profit and loss are calculated

• Profit or loss = selling price − cost price. Positive is a profit, negative is a loss, and zero is break-even.
• Profit % on cost = profit ÷ cost price × 100. The same formula gives the loss % when there is a loss.
• Profit margin = profit ÷ selling price × 100. It is not defined when the selling price is ৳0.

Worked example

A product costs ৳800 and sells for ৳1,000. The profit is 1,000 − 800 = ৳200. On cost, that is 200 ÷ 800 × 100 = 25%. As a margin on the selling price, it is 200 ÷ 1,000 × 100 = 20%.

If the same product is sold for ৳600 instead, the loss is ৳200, which is 200 ÷ 800 × 100 = 25% of the cost.

Profit margin vs markup

People often mix these up. Both start from the same profit, but they divide by different prices, so the percentages differ:

• The percentage on cost (markup) says how much you added to what you paid.
• The margin says what share of the selling price is profit.

Doubling your money is a 100% markup but only a 50% margin: buy at ৳250, sell at ৳500, and half of the selling price is profit. A margin can never reach 100%; a markup can be any size.

How to use the calculator

1. Enter the cost price: what you paid, including any delivery or packaging you want counted.
2. Enter the selling price. It can be ৳0 if the item was given away.
3. Select Calculate profit or loss.

Both prices are rounded to the nearest paisa before they are compared. It is break-even only when they are exactly equal after that, so small rounding differences never show up as a false profit or loss.