❓ Frequently Asked Questions – Profit & Loss Calculator
How is profit percentage calculated?
Profit Percentage is always calculated on the Cost Price. Formula: Profit % = (Profit ÷ Cost Price) × 100, where Profit = Selling Price − Cost Price. For example, if you buy something for ₹100 and sell it for ₹125, your profit is ₹25 and profit percentage is (25 ÷ 100) × 100 = 25%.
What is the difference between Profit % and Profit Margin?
Profit Percentage (also called Markup %) is calculated on Cost Price: (Profit ÷ CP) × 100. Profit Margin is calculated on Selling Price: (Profit ÷ SP) × 100. These two numbers are different. Example: CP=₹80, SP=₹100, Profit=₹20. Profit % = (20÷80)×100 = 25%. Profit Margin = (20÷100)×100 = 20%. Retail businesses usually talk in Margin, while wholesalers often use Markup.
How do I find the selling price when I know the desired profit %?
Use the "Find Selling Price" tab. Enter the Cost Price and your desired Profit Percentage. The formula is: SP = CP × (1 + Profit% ÷ 100). For example, if CP = ₹500 and you want 30% profit: SP = 500 × (1 + 30/100) = 500 × 1.30 = ₹650. For a loss scenario, enter a negative percentage.
How do I find the cost price when I know the selling price and profit %?
Use the "Find Cost Price" tab. Enter the Selling Price and known Profit Percentage. The formula is: CP = SP ÷ (1 + Profit% ÷ 100). For example, if SP = ₹650 and Profit% = 30%: CP = 650 ÷ 1.30 = ₹500. This is useful when you know what price to sell at and what profit you want, but need to determine the maximum you can pay for the product.
How do I use the Multi-Item P&L sheet?
Click the "Multi-Item" tab. Click "+ Add Item" to add products. For each item, enter the item name, quantity, cost price per unit and selling price per unit. The calculator automatically computes profit or loss per item and shows totals including overall profit/loss amount and percentage. You can print the sheet or copy a summary. This is ideal for small businesses managing multiple products.