How to Use the Sales Profit Calculator
- Enter your Sales Revenue - the total income from selling products or services.
- Enter your Cost of Goods Sold - the direct costs attributable to the production of the goods sold.
- Enter your Operating Expenses - costs associated with running the business (rent, salaries, utilities, etc.).
- Click the Calculate button to see the results.
Understanding the Results
- Gross Profit is your profit after subtracting the cost of goods sold from sales revenue.
- Net Profit is your final profit after subtracting operating expenses from gross profit.
- Profit Margin is the percentage of revenue that remains as profit after all expenses are deducted.
Example
If you have a sales revenue of $100,000, a cost of goods sold of $60,000, and operating expenses of $20,000:
Gross Profit = $100,000 - $60,000 = $40,000
Net Profit = $40,000 - $20,000 = $20,000
Profit Margin = ($20,000 / $100,000) × 100 = 20%