What is the difference between markup and profit margin?

Markup is profit divided by Cost Price. Profit Margin is profit divided by Selling Price.

What is Break-Even Point?

Break-even occurs when Selling Price exactly equals Cost Price, resulting in neither profit nor loss.

General Calculators

Profit & Loss Calculator

Calculate profit or loss amount and margin percentage from cost price and selling price with step-by-step resolution.

Cost Price - CP (₹)

₹

Selling Price - SP (₹)

₹

Net Profit

₹450

Profit of ₹450.00 (30.00%)

Margin Percentage:30%

Cost Price (CP):₹1,500

Selling Price (SP):₹1,950

Cost Price, Selling Price & Margin Formulas

Determines whether a commercial transaction resulted in a profit or loss, calculating absolute profit/loss amount and margin percentage relative to Cost Price.

Profit = SP - CP (if SP > CP) | Loss = CP - SP (if SP < CP) | Profit % = (Profit / CP) * 100 | Loss % = (Loss / CP) * 100

Calculation Steps

1Compare Selling Price (SP) against Cost Price (CP).
2If SP > CP: Profit = SP - CP. Calculate Profit Percentage on CP.
3If SP < CP: Loss = CP - SP. Calculate Loss Percentage on CP.
4If SP = CP: Transaction is at Break-Even (Zero Profit, Zero Loss).

Practical Example

Scenario: Bought goods for ₹8,000 and sold for ₹10,400

Inputs: Cost Price (CP): ₹8,00,000? No: CP: ₹8,000 | Selling Price (SP): ₹10,400

Calculation: Profit = 10,400 - 8,000 = ₹2,400 | Profit % = (2,400 / 8,000) * 100 = 30.00%

Result: Profit: ₹2,400 | Profit Percentage: 30.00%

Assumptions & Disclaimers

Key Assumptions:

Profit and Loss percentages are always calculated relative to Cost Price (CP) unless specified as profit margin on selling price.
Overhead expenses (shipping, handling) should be included in Cost Price.

Does not account for business income tax or sales commission fees.