Profit calculator

Free Profit Calculator for Small Businesses & Freelancers

Calculate profit, profit margin, markup, and pricing instantly. Turn calculations into professional invoices with InvoiceWala.

Profit Calculator

Revenue minus expenses, with live margin and markup.

No signup

Net profit = Revenue − Expenses

Change either amount to see the result instantly. Use the same scope and period for both figures.

Profit calculatorProfit margin calculatorMarkup calculatorBusiness profit calculator

Your profit breakdown

Profit
Net profit
₹3,500.00

The amount remaining after the expenses you entered.

Profit margin
35.00%

Profit ÷ Revenue × 100

Markup
53.85%

Profit ÷ Expenses × 100

Use your revenue as the starting invoice amount. Expenses remain part of your internal calculation.

Create invoice from this result

Results explanation

Revenue, Expenses, Net Profit, Profit Margin and Markup

Revenue

₹10,000.00

Revenue is the total money earned before subtracting expenses. Example: sales worth ₹10,000.

Expenses

₹6,500.00

Expenses are business costs such as material, software, ads, rent, delivery, labor or subcontractors.

Net Profit

₹3,500.00

Formula: Net Profit = Revenue - Expenses. Example: ₹10,000 - ₹6,500 = ₹3,500.

Profit Margin

35.00%

Formula: Profit Margin = Net Profit / Revenue × 100. Example: ₹3,500 / ₹10,000 = 35%.

Markup %

53.85%

Formula: Markup = Net Profit / Expenses × 100. Example: ₹3,500 / ₹6,500 = 53.85%.

Profit guide

How To Calculate Profit

Profit calculation starts with revenue. Revenue means the total amount your business earns from a sale, project, invoice, order or service before costs are removed. For a freelancer, revenue may be a client project fee. For a shop, it may be product sales. For a contractor, it may be the amount billed for labor and materials. A profit calculator helps you see whether that revenue is actually enough after expenses.

Expenses are the costs required to deliver the work or product. These can include product cost, contractor labor, packaging, delivery, ads, software, rent, payment gateway fees, subcontractors, travel or any direct business cost. If revenue is ₹10,000 and expenses are ₹6,500, the net profit formula is simple: Net Profit = Revenue - Expenses. In this example, profit is ₹3,500.

Profit margin shows how much of your revenue remains as profit. The profit margin formula is Profit Margin = Net Profit / Revenue × 100. If net profit is ₹3,500 on ₹10,000 revenue, the profit margin is 35%. A profit margin calculator is useful before you send a quote or invoice because it tells you whether your price is healthy enough.

Markup is different from margin. Markup compares profit to expenses or cost. The markup formula is Markup = Net Profit / Expenses × 100. If expenses are ₹6,500 and profit is ₹3,500, markup is 53.85%. Use markup when setting prices from cost. Use margin when checking how profitable the final revenue is. InvoiceWala helps you calculate the number first, then create a professional invoice with the same pricing.

Business use cases

Who uses a business profit calculator?

Freelancers

Check project profit after software, outsourcing, platform fees, ads or time cost before sending the final invoice.

Agencies

Compare campaign revenue with designer, developer, ad spend and vendor costs to protect service margins.

Contractors

Estimate profit after labor, material, travel, equipment and subcontractor costs before billing a milestone.

Consultants

Understand net profit on retainers, workshops and advisory projects after travel, research and tool costs.

Ecommerce Sellers

Calculate profit after product cost, packaging, delivery, returns, ads and marketplace fees.

Small Businesses

Use a business profit calculator to understand whether sales revenue actually covers operating expenses.

Profit calculation examples for projects and sales

These examples use the same revenue-minus-expenses calculation as the tool above. The amounts are illustrative. Replace them with the income and costs for your own project or reporting period.

Freelance project

A designer invoices ₹25,000 and spends ₹10,000 on the project. The ₹15,000 profit represents 60% of revenue, while markup is 150% of the project expenses.

Revenue
₹25,000
Expenses
₹10,000
Profit / loss
₹15,000
Margin
60%

Product sale

A seller receives ₹5,000 for an order and records ₹3,000 of costs. The remaining ₹2,000 is a 40% margin and a 66.67% markup on the entered costs.

Revenue
₹5,000
Expenses
₹3,000
Profit / loss
₹2,000
Margin
40%

A loss-making job

A job brings in ₹8,000 but costs ₹10,000 to complete. The result is a ₹2,000 loss, a negative 25% margin and a negative 20% markup.

Revenue
₹8,000
Expenses
₹10,000
Profit / loss
−₹2,000
Margin
−25%

Margin and markup use different denominators

The profit amount is the same in both percentages. What changes is the comparison. Margin asks how much of your selling revenue remains after the entered expenses. Markup asks how much profit you have added relative to those expenses.

With ₹10,000 revenue and ₹6,500 expenses, the profit is ₹3,500. Dividing by revenue gives 35%. Dividing by expenses gives 53.85%. A 35% markup would not produce a 35% margin, because the two percentages start from different amounts.

Use the result that answers your question and label it clearly when discussing a quote with your team. The calculator displays both percentages so you can compare them without switching tools.

Match the revenue and expenses you enter

Choose the scope before entering figures. You might calculate one product order, one client project or one month of business activity. Revenue and expenses should refer to that same scope. Mixing a single project fee with the costs of your entire business will produce a number that is difficult to interpret.

For a project estimate, list the costs you expect to incur. For a completed job, use the costs recorded for that work. If a cost is shared across several jobs, use a consistent internal approach to decide what belongs in this calculation.

The output reflects only the expenses you include. It is a simple calculation, not a full set of accounts or an automatic assessment of which costs belong in your profit figure.

Check profit before and after a price change

Keep expenses at ₹6,500 and compare two possible project prices. At ₹10,000 revenue, profit is ₹3,500 and margin is 35%. At ₹9,000 revenue, profit falls to ₹2,500 and margin becomes 27.78%. A ₹1,000 reduction in price removes ₹1,000 from the calculated profit when costs stay unchanged.

You can use the same approach to explore an expense change. Keep revenue fixed and update the cost estimate, then compare the new result. This helps make the effect visible without assuming that sales volume, delivery scope or other business conditions will remain unchanged in practice.

A quick checklist before using the result

Use a consistent period

Compare income and costs for the same sale, project or time period. Keep your estimate separate from the actual figures when reviewing a completed project.

Check missing costs

Review the relevant materials, labour, delivery, software, platform fees and other costs. The tool cannot identify an expense you have left out.

Read negative and undefined results

A negative amount is a loss. A zero denominator makes the corresponding percentage undefined. Neither situation should be replaced with a positive-looking percentage.

Review the invoice separately

The invoice link carries revenue as an item price. Add the correct customer, description, dates and any applicable tax in the invoice maker before sharing it.

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Profit Margin Examples

RevenueExpensesProfitMargin
100060040040%
50003000200040%
100006500350035%

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Profit Calculator FAQs

What is profit?

Profit is the amount left after subtracting expenses from revenue. If revenue is ₹10,000 and expenses are ₹6,500, net profit is ₹3,500.

How do I calculate profit margin?

Profit margin = Net Profit / Revenue × 100. A ₹3,500 profit on ₹10,000 revenue gives a 35% profit margin.

What is markup?

Markup compares profit with expenses or cost. Markup % = Net Profit / Expenses × 100.

Can I create an invoice from the result?

Yes. After calculating profit, use InvoiceWala's invoice generator to create a professional invoice with the same pricing.

Is this calculator free?

Yes. The profit calculator is free and does not require signup for calculation.

How do freelancers use a profit calculator?

Freelancers use it to check whether project fees cover tools, outsourcing, platform fees, ads, travel and time costs.

What happens when expenses are higher than revenue?

The result is a loss. For example, ₹8,000 revenue less ₹10,000 expenses gives a loss of ₹2,000 and a negative 25% margin. The calculator shows losses instead of replacing them with zero.

Why is profit margin not defined when revenue is zero?

Margin divides profit by revenue. With zero revenue, that percentage cannot be calculated. The profit or loss amount can still be shown.

Why is markup not defined when expenses are zero?

Markup divides profit by expenses. When expenses are zero, the percentage has no valid denominator. The calculator shows Not defined rather than a misleading zero percentage.

What is the difference between margin and markup?

Margin compares profit with revenue; markup compares profit with expenses or cost. With ₹10,000 revenue and ₹6,500 expenses, the same ₹3,500 profit gives a 35% margin and a 53.85% markup.

Can I copy or download the profit calculation?

Yes. Copy result copies a summary, and Download CSV exports revenue, expenses, profit or loss, margin and markup. Undefined percentages are labelled Not defined.

Does the calculator save my figures automatically?

No. The inputs are held on this page while you use it and reset on refresh. Copy or download the calculation if you want to keep a record.

Should I enter figures for one project or the whole month?

Either works, provided revenue and expenses cover the same scope and period. Do not compare a single project fee with a whole month of unrelated business expenses.

Does this automatically calculate income tax or GST?

No. It subtracts the expenses you enter from revenue. It does not calculate taxes, classify costs or determine which expenses are deductible.

Can I use decimal amounts?

Yes. Enter revenue and expenses in rupees with up to two decimal places. Currency results are displayed to two decimal places and percentages to two decimal places.

What amount is passed to the invoice maker?

The invoice link passes your revenue as the starting item price. Your internal expenses and calculated profit are not added as customer charges. Review all invoice details and taxes separately.

Check the numbers before your next quote

Enter your revenue and expenses, review profit, margin and markup, then download the result or use the revenue in your invoice.

Calculate profit ↑