Profit is what is left after every cost has been paid. For a quick check you only need total revenue and total cost, but splitting costs into variable and fixed parts tells you much more: how much each sale really contributes, how many units you need to break even, and how profit will change if volume rises or falls. This calculator supports both approaches.
How to use the profit calculator
- Choose Units, price and costs for a per-unit analysis, or Revenue and total cost for a quick result.
- For the per-unit view, enter units sold, selling price per unit, variable cost per unit (materials, packaging, shipping, commissions) and fixed costs for the period.
- For the quick view, enter revenue and total costs.
- Read profit (or loss) on the tape. In per-unit mode, the table shows profit at half, double and other multiples of your volume.
Profit formulas
Worked example
A small brand sells 1,200 candles a month at $15 each. Wax, jars, wicks and shipping cost $9 per candle, and rent, software and insurance cost $4,500 a month.
Revenue = 1,200 × 15 = $18,000
Variable costs = 1,200 × 9 = $10,800 → contribution margin = $7,200 ($6 a unit)
Profit = 7,200 − 4,500 = $2,700 → 15% profit margin, $2.25 per candle
Break-even = 4,500 ÷ 6 = 750 candles
In the quick mode, the same month is simply $18,000 of revenue minus $15,300 of total cost. If you entered $18,000 and $13,500 instead, profit would be $4,500 — a 25% margin and a 33.33% markup on cost.
How volume changes profit
| Candles sold | Revenue | Total cost | Profit |
|---|---|---|---|
| 600 | $9,000 | $9,900 | −$900 |
| 900 | $13,500 | $12,600 | $900 |
| 1,200 | $18,000 | $15,300 | $2,700 |
| 1,800 | $27,000 | $20,700 | $6,300 |
| 2,400 | $36,000 | $26,100 | $9,900 |
Doubling sales from 1,200 to 2,400 more than triples profit, because fixed costs don’t grow. This is operating leverage, and it works in reverse too: halving sales turns a profit into a loss.
Getting the inputs right
- Classify costs honestly. Costs that rise with each sale are variable; costs you pay regardless of sales are fixed. Some, like hourly staff, are partly each.
- Include payment and platform fees. A 3% card fee on a $15 sale is $0.45 of variable cost per unit.
- Use the same period for fixed costs and units — a month of rent with a month of sales.
- Profit is not cash. Inventory purchases, loan principal and owner draws affect cash but not this profit figure.
To find the volume that hits a specific profit target, use the profit goal calculator. The break-even calculator charts revenue against total cost, and the profit margin calculator breaks profit into gross, operating and net levels.
Results are planning estimates based on the costs you enter; they are not accounting or tax advice.
Frequently asked questions
How do I calculate profit?
Profit is revenue minus all costs. With unit figures, profit = units sold × (price − variable cost per unit) − fixed costs. Selling 1,200 units at $15 that cost $9 each in variable costs, with $4,500 of fixed costs, leaves $2,700 of profit.
What is contribution margin?
Contribution margin is revenue minus variable costs. It is the amount each sale contributes toward fixed costs and then profit. In the example, each unit contributes $15 − $9 = $6.
What is the difference between profit and profit margin?
Profit is a dollar amount. Profit margin is that amount as a percentage of revenue. $2,700 of profit on $18,000 of sales is a 15% profit margin.
Why does profit per unit change with volume?
Fixed costs are spread across more units as volume rises, so profit per unit increases. At 600 units the example business loses $900; at 2,400 units it earns $9,900.