💸 Ever sold something and wondered, “How much did I really make?” That’s where profit percentage comes in! Whether you’re running a business, flipping items online, or just curious about how profits work, this guide will break it down step by step—no stress, just simple math.
Table of Contents
🙋 What Is Profit Percentage?
Profit percentage tells you how much profit you made compared to your cost price—expressed as a percent. It’s a great way to see how good your deal was or how efficiently you’re selling something.
In short:
Profit Percentage = (Profit ÷ Cost Price) × 100
Let’s walk through it with an easy example!
🧮 Step-by-Step: How to Calculate Profit Percentage
Step 1: Know Your Cost Price and Selling Price
- Cost Price (CP) = How much you paid or spent
- Selling Price (SP) = How much you sold it for
Step 2: Calculate the Profit
iProfit = Selling Price – Cost Price
Step 3: Plug Into the Formula
Profit % = (Profit ÷ Cost Price) × 100
🛠️ Profit Percentage Calculator
Enter the Cost Price, Selling Price and the tool will calculate the Profit percentage
🎯 Example Time!
Let’s say:
- You bought a watch for $50
- You sold it for $80
Step 1:
iniCopyEditProfit = $80 - $50 = $30
Step 2:
nginxCopyEditProfit % = ($30 ÷ $50) × 100 = 60%
✅ So, you made a 60% profit on that watch! 🥳
📉 What About Loss?
If your selling price is lower than the cost price, you’re in a loss. But you can still use a similar formula:
matlabCopyEditLoss % = (Loss ÷ Cost Price) × 100
Example:
- Bought for $100
- Sold for $80
→ Loss = $20
→ Loss % = (20 ÷ 100) × 100 = 20% loss
⚡ Quick Tips
- Always use the cost price as your base for the percentage.
- Profit % can help with pricing strategies, discounts, and cost control.
- Use online calculators if you’re working with lots of data.
📦 Final Thoughts
Profit percentage is a super helpful tool for understanding how much you’re actually making. Whether you’re selling lemonade or running an online store, this tiny formula packs a punch for smart decision-making.