How much profit will I make?
Enter what one unit costs you, what you sell it for and how many you sell to see your profit. Add a discount or other costs such as shipping and fees for a truer figure.
- Profit
- $4,000.00
Selling 500 units at $20.00 with a cost of $12.00 each makes a profit of $4,000.00.
- Revenue
- $10,000.00
- Total cost
- $6,000.00
- Profit per unit
- $8.00
- Profit margin
- 40%
- Markup
- 66.67%
Profit: $4,000.00. Selling 500 units at $20.00 with a cost of $12.00 each makes a profit of $4,000.00.
Profit by units sold
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes the profit, revenue, total cost, profit per unit, margin, markup and break-even units from a unit cost, a selling price, the quantity sold, a discount and other costs.
Example with the default inputs (Cost per unit $12.00, Selling price per unit $20.00, Units sold 500, Discount 0%, Other costs $0.00): Selling 500 units at $20.00 with a cost of $12.00 each makes a profit of $4,000.00.
Method: revenue = price × (1 − discount ÷ 100) × units; total cost = cost per unit × units + other costs; profit = revenue − total cost; margin = profit ÷ revenue × 100; markup = profit ÷ total cost × 100; break-even units = ⌈other costs ÷ (price after discount − cost per unit)⌉.
- Every unit sells at the same price and costs the same. The discount applies to every unit.
- Profit is before income tax. Other costs are for the whole batch and do not change with the units.
- Arithmetic is exact on the typed decimals; money shows to the cent, and the margin and markup to 2 decimals, halves up.
Worked examples
Each example is checked against the calculator on every build.
- Cost per unit $15.00, Selling price per unit $25.00, Units sold 100 gives Revenue $2,500.00, Total cost $1,500.00, Profit $1,000.00, Profit per unit $10.00, Profit margin 40%, Markup 66.67%.
- Cost per unit $12.00, Selling price per unit $20.00, Units sold 500, Discount 10%, Other costs $1,500.00 gives Revenue $9,000.00, Total cost $7,500.00, Profit $1,500.00, Profit per unit $3.00, Profit margin 16.67%, Markup 20%, Units to break even 250.Source: U.S. Small Business Administration, "Calculate your startup costs": break-even units = fixed costs ÷ (price − variable costs) (https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs)
- Cost per unit $9.99, Selling price per unit $12.50, Units sold 3, Other costs $10.00 gives Revenue $37.50, Total cost $39.97, Profit -$2.47, Profit per unit -$0.82, Units to break even 4.Source: U.S. Small Business Administration, "Calculate your startup costs": break-even units = fixed costs ÷ (price − variable costs) (https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs)
How it works
With the cost per unit c, the selling price per unit p, the units sold q, the discount d (in percent) and the other costs F:
- Price after discount n = p × (1 − d ÷ 100)
- Revenue R = n × q
- Total cost C = c × q + F
- Profit P = R − C (negative for a loss)
- Profit per unit = P ÷ q
- Profit margin = P ÷ R × 100, left out when R is 0 (a 100% discount)
- Markup = P ÷ C × 100, left out when C is 0
- A margin or markup that rounds to more than 1 trillion percent either way (a revenue or cost of a tiny fraction of a cent) is left out too.
- Units to break even = F ÷ (n − c), rounded up to a whole unit. It is left out when F is $0 (every unit already makes a profit), and when n is not more than c, because then no number of units covers the costs.
Rules:
- The cost per unit and other costs are $0 to $1 trillion. The selling price is $0.0001 to $1 trillion. The units sold are 0.0001 to 1 billion, and may be fractions (for goods sold by weight). The discount is 0% to 100%. An empty discount or other costs counts as 0.
- The arithmetic is exact on the decimals you type. Money shows to the cent with halves rounded up (away from 0). The margin and the markup are rounded to 2 decimals, halves away from 0, from the exact value.
The chart draws the profit for 0 to twice the units sold at the same prices and costs, with your number of units marked.
Assumptions
- Every unit sells at the same price and costs the same.
- Profit is before income tax.
Worked examples by hand
100 units bought at $15 and sold at $25. R = 25 × 100 = $2,500; C = 15 × 100 = $1,500; P = $1,000, or $10 a unit. Margin = 1,000 ÷ 2,500 × 100 = 40%; markup = 1,000 ÷ 1,500 × 100 = 66.666…, shown as 66.67%.
500 units at $20 with 10% off, $12 each, $1,500 of other costs. n = 20 × 0.9 = $18; R = 18 × 500 = $9,000; C = 12 × 500 + 1,500 = $7,500; P = $1,500, or $3 a unit. Margin = 1,500 ÷ 9,000 × 100 = 16.666…, shown as 16.67%; markup = 1,500 ÷ 7,500 × 100 = 20%. Break-even = 1,500 ÷ (18 − 12) = 250 units.
3 units at $12.50, $9.99 each, $10 of other costs. R = $37.50; C = 9.99 × 3 + 10 = $39.97; P = −$2.47 (a loss), or −0.8233… a unit, shown as −$0.82. Break-even = 10 ÷ (12.50 − 9.99) = 10 ÷ 2.51 = 3.98…, rounded up to 4 units.
Other questions people ask
How do I calculate profit?
Subtract the total cost from the revenue. Selling 100 units at $25 that cost $15 each brings in $2,500 of revenue for $1,500 of cost, a profit of $1,000.
What is the difference between profit, margin and markup?
Profit is a dollar amount: revenue minus cost. Margin is the profit as a percent of the revenue, and markup is the profit as a percent of the cost. The $1,000 profit above is a 40% margin (1,000 ÷ 2,500) and a 66.67% markup (1,000 ÷ 1,500).
How does a discount change my profit?
A discount lowers the price of every unit, so it comes straight out of your profit. At $20 with 10% off, each unit sells for $18. On 500 units that is $1,000 less revenue, and $1,000 less profit.
What are other costs?
Costs for the whole batch that do not change with the number of units, such as shipping a whole order, platform fees, rent or advertising. They are added once to the total cost.
How many units do I need to sell to break even?
Divide your other costs by what each unit earns after its own cost (the price after discount minus the cost per unit), then round up. With $1,500 of other costs and $6 earned per unit, you break even at 1,500 ÷ 6 = 250 units.
Is this profit before or after tax?
Before tax. Income tax on the profit depends on your business type and tax situation, so it is not included.
How is the answer rounded?
The calculator works with the exact decimals you type. Money shows to the cent, and the margin and markup to 2 decimals, with halves rounded up.