Profit Percentage Calculator
Calculate the profit percentage of a sale relative to its cost.
Use this Profit Percentage Calculator calculator for quick, clear estimates. Try a tiny example to see the impact of each input.
Q: What is profit percentage?
Profit percentage is a metric used to assess the profitability of a business or investment, calculated by dividing the profit by the cost and multiplying by 100.
How do you calculate profit percentage?
To calculate profit percentage, subtract the cost from the selling price to find the profit, then divide the profit by the cost, and finally multiply the result by 100. The formula is: ((Selling Price – Cost) / Cost) 100.
What is a good profit percentage?
A “good” profit percentage varies significantly by industry. For example, some industries like software might see gross profit margins of 75-90%, while retail and food services might aim for 25-50%.
What is the difference between profit margin and profit percentage?
Profit margin is calculated as profit divided by revenue (selling price), indicating how much profit is made per dollar of sales. Profit percentage (or markup percentage) is calculated as profit divided by cost, indicating the profit made relative to the cost of the item.