Shop Profit Calculator
Find the net profit and margin percentage of a shop sale after purchase cost and running expenses are deducted.
Recent
Formula
How the calculation works
Enter the selling price, the purchase cost of the item and the expenses such as transport, packaging and shop overhead for that sale.
The tool subtracts the purchase cost to get gross profit and then deducts expenses to reach the net profit you actually keep.
It divides the net profit by the selling price and multiplies by 100 to express the result as a margin percentage.
Common mistakes
- Counting gross profit as real earnings, because expenses such as transport and packaging still have to come out of that figure.
- Comparing margin percentage with markup percentage, since a markup on cost and a margin on selling price are different numbers.
When to use it
- Use it daily to see whether a product or a whole day of sales is actually making money after expenses.
- Use it to set a selling price that leaves the margin your shop needs to stay profitable.
Worked example
A product sold for Tk 1,200 that cost Tk 800 to buy and Tk 150 in expenses gives a gross profit of Tk 400, a net profit of Tk 250 and a margin of about 20.83 percent.
Common questions
What is the difference between profit and margin?
Profit is the amount of money left in taka, while margin is that amount expressed as a percentage of the selling price.
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