Profit Calculator
Calculate your net profit from total revenue and costs to see how much money your business keeps.
Profit Calculator
Calculate your net profit from total revenue and costs to see how much money your business keeps.
Real-World Examples
Revenue: $6,000, Costs: $1,800
Profit: $4,200 (70% margin)
Revenue: $120,000, Costs: $96,000
Profit: $24,000 (20% margin)
Revenue: $250,000, Costs: $187,500
Profit: $62,500 (25% margin)
Common Mistakes to Avoid
Forgetting to include indirect costs
Fix: Total costs should include not just COGS but also overhead, salaries, marketing, software, and any other operating expenses.
Mixing cash flow with profit
Fix: Profit is revenue minus costs for a period. Cash flow tracks money moving in and out. A profitable business can have negative cash flow if revenue is tied up in unpaid invoices.
Ignoring the margin alongside the dollar amount
Fix: A $50,000 profit on $1M revenue (5% margin) is very different from $50,000 profit on $100K revenue (50% margin). Always review both numbers together.