What this calculator does
Profit or loss is the simplest possible measure of how a business, project or sale performed: total revenue minus total costs. If revenue is higher, the result is a profit; if costs are higher, it is a loss. This calculator gives that headline figure along with the profit margin, revenue expressed as a percentage that turned into profit.
This is deliberately a general, simple calculation rather than a formal accounting profit-and-loss statement, which would separate revenue and costs into many categories (cost of goods sold, operating expenses, interest, tax) across a set period. For a quick check of whether something made or lost money overall, adding up total revenue and total costs is usually all that is needed.
The formula
Subtract total costs from total revenue to get the profit or loss. Divide that result by revenue and multiply by 100 to get the profit margin as a percentage of revenue.
| Term | Meaning |
|---|---|
| Revenue | The total amount of money brought in, before any costs are subtracted. |
| Costs | Everything spent to generate that revenue: materials, labour, overheads, and any other expense. |
| Profit margin | Profit expressed as a percentage of revenue, showing how much of every dollar earned was kept as profit. |
The inputs explained
| Field | What to enter |
|---|---|
| Revenue ($) | Total revenue or income for the period or transaction being checked. |
| Total costs ($) | Total costs incurred to generate that revenue. |
When to use it
Checking a single sale or project
Adding up everything a specific job, sale or short project brought in against everything it cost gives a quick answer on whether it was worthwhile.
A quick monthly or quarterly check
Before preparing a full set of accounts, a rough total-revenue-minus-total-costs calculation gives an early read on whether a period was profitable.
Comparing margin across different jobs
The same dollar profit can represent a very different margin depending on revenue size, so comparing profit margin percentages side by side is often more useful than comparing raw profit figures.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How does profit margin change as costs rise, on fixed $50,000 revenue?
The same revenue figure with total costs rising, showing how profit and margin shrink.
| Total costs | Profit or loss | Profit margin |
|---|---|---|
| $10,000 | $40,000.00 | 80.0% |
| $20,000 | $30,000.00 | 60.0% |
| $30,000 | $20,000.00 | 40.0% |
| $40,000 | $10,000.00 | 20.0% |
| $45,000 | $5,000.00 | 10.0% |
Questions
What is the difference between profit and profit margin?
Profit is a dollar amount (revenue minus costs). Profit margin expresses that same profit as a percentage of revenue, which makes it possible to compare profitability across businesses or periods of very different sizes.
What counts as a cost in this calculator?
Anything spent to generate the revenue being measured: materials, labour, rent, and any other expense. This calculator takes a single total-costs figure, so add up every relevant cost before entering it.
Is this the same as a formal profit and loss statement?
No. A formal P&L statement breaks revenue and costs into detailed categories over a defined accounting period. This calculator gives the same headline result using just two total figures, for a quick check rather than formal reporting.
What does a negative result mean?
A negative profit figure means costs exceeded revenue, i.e. a loss. The calculator reports this clearly as a loss rather than showing a negative profit number.
For a return-on-investment framing of the same figures, see the ROI calculator. For revenue accounting for both explicit and opportunity costs, see the economic profit calculator.