Percentage calculator
Profit Percentage Calculator
Profit percentage measures profit relative to the cost price. It is different from profit margin, which compares profit with selling price.
Profit / loss percentage
25%
Profit
Formula
((Selling Price − Cost Price) / Cost Price) × 100Step-by-step calculation
- 1
Subtract cost price from selling price.
- 2
Divide the difference by cost price.
- 3
Multiply by 100. A positive result indicates profit; a negative result indicates loss.
Formula
Profit Percentage = ((Selling Price − Cost Price) ÷ Cost Price) × 100
How to calculate it
- Subtract cost price from selling price to calculate profit.
- Divide the profit by the cost price.
- Multiply by 100 to express profit as a percentage of cost.
An item costs 80 and sells for 100
Values: Profit = 100 − 80 = 20.
Result: 20 ÷ 80 × 100 = 25% profit.
Frequently asked questions
Is profit percentage the same as profit margin?
No. Profit percentage in this calculation uses cost price as the denominator. Profit margin uses selling price.
Can profit percentage be negative?
Yes. If selling price is lower than cost price, the result is negative and represents a loss relative to cost.
What happens when cost price is zero?
Profit percentage cannot be calculated using this formula because cost price is the denominator.