Business
Calculator for profit
Calculate net profit, net margin, total cost and cost ratio from revenue and costs.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
Net profit
—
—
How the result break down
| Amount |
|---|
Total cost na variable costs plus fixed costs. Cost ratio na total cost divided by revenue.
Quick look at the result
We scale bars to the bigger of total cost and profit. When costs pass revenue, the profit bar dey show amber and the result message dey point out the loss.
Profit for different revenue levels
| Revenue | Net profit |
|---|
Costs remain as you enter dem above. Na only revenue dey change.
Formula
Net profit = revenue − variable costs − fixed costs. Net margin = net profit ÷ revenue × 100%. Total cost = variable costs + fixed costs. Cost ratio = total cost ÷ revenue × 100%.
Example wey show the calculation
Revenue $100,000, variable costs $68,000, fixed costs $8,000: total cost = $76,000, net profit = $100,000 − $76,000 = $24,000, net margin = $24,000 ÷ $100,000 × 100% = 24.00%, and cost ratio = 76.00%.
Where e fit work and limits
This na view of operations: we no separate interest, taxes, depreciation or one-off items. If your cost figures already include dem, the margin go reflect dem; if dem no dey inside, e no go reflect dem. We treat costs as totals for the period, no be rates per unit.
Questions wey people dey ask often
How the profit calculator dey work?
Net profit = revenue − variable costs − fixed costs; net margin = net profit ÷ revenue. E dey split one period's revenue into wetin costs consume and wetin remain.
Wetin separate variable costs from fixed costs?
Variable costs dey change with output — materials and fees per order. Fixed costs no dey — rent and base salaries. That split matter for break-even analysis; for net profit, na only total cost matter.
Wetin negative net profit mean?
Costs pass revenue for that period: na loss of that amount. The margin negative by the same proportion.
Net margin and gross margin na the same thing?
No. Gross margin stop at cost of goods sold; net margin dey count all variable and fixed costs wey you enter here, so e usually lower.
This include tax?
No, unless tax already dey inside the cost figures wey you enter. Apply the relevant tax treatment separately to net profit.
Why margin show dash when revenue na zero?
Margin dey divide by revenue, so e no get defined value when revenue na zero. We still dey show profit as negative total costs.
Other tools wey relate to dis
- Calculator for gross margin — margin before operating costs
- Calculator for break-even point — volume wey go cover fixed costs
- Calculator for discount — how discounts dey reduce profit
Results na estimates; dem no replace advice from qualified professional.