Product Profit Calculator - Calculate Profit, Margin, and ROI

Are you running a business and want to find out how much money you're actually making per product? Our Product Profit Calculator helps you quickly compute your Gross Profit, Profit Margin, Net Profit, and ROI (Return on Investment) using just a few inputs: Selling Price per Unit, Cost Price per Unit, Quantity Sold, and Additional Costs.

Whether you're selling handmade crafts or running an online store, this tool is perfect for understanding your true earnings.

Profit Calculation Formulas

1. Gross Profit

Gross Profit is the total profit before deducting additional costs.

Formula:

$\text{Gross Profit}=(\text{Selling Price per Unit}-\text{Cost Price per Unit})\times \text{Quantity Sold}$

2. Net Profit

Net Profit is the actual profit after subtracting additional costs.

Formula:

$\text{Net Profit}=\text{Gross Profit}-\text{Additional Costs}$

3. Profit Margin (%)

Profit Margin is the percentage of profit relative to the selling price.

Formula:

$\text{Profit Margin (\%)}=\left(\frac{\text{Net Profit}}{\text{Selling Price per Unit}\times \text{Quantity Sold}}\right)\times 100$

4. ROI (Return on Investment)

ROI tells you how much return you made on your total investment.

Formula:

$\text{ROI (\%)}=\left(\frac{\text{Net Profit}}{\text{Total Cost}}\right)\times 100$

Where:

$\text{Total Cost}=(\text{Cost Price per Unit}\times \text{Quantity Sold})+\text{Additional Costs}$

Example Calculation

Let’s calculate the profit based on the following inputs:

• Selling Price per Unit = ₹500
• Cost Price per Unit = ₹300
• Quantity Sold = 100
• Additional Costs = ₹5,000

Step-by-step:

Gross Profit

$(500-300)\times 100=200\times 100=\text{₹}20,000$

Net Profit

$\text{₹}20,000-\text{₹}5,000=\text{₹}15,000$

Profit Margin (%)

$\left(\frac{15,000}{500\times 100}\right)\times 100=\left(\frac{15,000}{50,000}\right)\times 100=30\%$

Total Cost

$(300\times 100)+5,000=30,000+5,000=\text{₹}35,000$

ROI (%)

$\left(\frac{15,000}{35,000}\right)\times 100\approx 42.86\%$​​​​​​​

Conclusion

With just four simple inputs, this calculator gives you a complete picture of your product's profitability. Use this tool regularly to analyze your business performance and improve pricing strategies.