# Profit Calculator

After selecting the calculation type in the profit calculator below, enter the required information and press the calculate button.

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## What is profit?

The dictionary literally means money from shopping. In trade, it means the difference between the cost amount and the selling price.

## What is the profit rate and how is it calculated?

It is the ratio of the positive difference between the revenue (sale) amount and the cost (purchase) amount obtained from the sale of a product or service to the cost amount.

It is obtained by subtracting the amount of gross profit from the income amount and multiplying it by 100. For example, the gain rate obtained from a good with a purchase price of USD 500 and a selling price of USD 750 is (750 - 500) X 100/500 = 250 X 100/500 = 50 (ie 50%).

## What is the profit margin and how is it calculated?

It is the ratio of the positive difference between the revenue amount and the cost amount obtained from the sale of a product or service to the sales amount.

It is calculated by subtracting the cost amount from the income amount and dividing the gross profit amount by the income amount and multiplying it by 100. For example, the profit margin in the sale of a product with a purchase price of USD 500 and a selling price of USD 750 is (750 - 500) X 100/500 = 250 X 100/750 = 33.33 (ie 33.33%).

## How is profit calculated?

It is calculated with the positive difference obtained by subtracting the cost amount from the income amount. For example, the money obtained from a good with a purchase price of USD 100 and a selling price of USD 120 is calculated as 120 - 100 = USD 20.

## How is the sales price calculated?

The selling price is determined by increasing the purchase price (or cost amount) by the gain rate. For example, if you want to gain 20% from the sale of a good with a purchase price of USD 200, the selling price will be calculated as 200 x (100 + 20) / 100 = 200 x 1.2 = USD 240.

## How is the purchase price calculated?

The purchase price is calculated by multiplying the sales price by 100 multiplied by the sum of the sales ratio by 100. For example, if a 20% profit is obtained from the sale of a good with a sales price of USD 240, the purchase price (or cost) of that good will be calculated as 240 x 100 / (100 + 20) = 240 / 1.2 = USD 200.