The Hesapstan profit calculator is designed to calculate profit, loss, profit margin, markup and required selling price from cost, selling price, markup or target margin more clearly. It helps distinguish markup from profit margin, which is one of the most common pricing mistakes.
What does the profit calculator do?
The calculator supports three commercial pricing tasks: calculating profit or loss from cost and selling price, calculating selling price from cost and markup, and calculating the selling price required for a target profit margin.
The result can show profit or loss, profit margin, markup, cost and selling price together. This lets you interpret the same pricing decision as both an amount and a percentage.
This tool calculates profit, margin and markup from basic cost and selling price values. VAT, taxes, commissions, shipping, advertising, returns, fixed costs and accounting tax items are not added automatically.
How is profit calculated from cost and selling price?
In the simplest mode, you enter cost and selling price. Profit is selling price minus cost. If the selling price is lower than the cost, the result is treated as a loss.
For example, if cost is 100 and selling price is 150, profit is 50. The calculator also shows profit margin and markup, but those two percentages are not the same.
What is profit margin?
Profit margin is profit divided by selling price. It answers the question: what percentage of the selling price is profit?
The formula is profit margin = profit / selling price × 100. If cost is 100, selling price is 150 and profit is 50, the profit margin is 50 / 150 × 100 = 33.33%.
Profit margin uses selling price as the denominator. Selling a product that costs 100 for 150 gives about 33.33% margin, not 50% margin.
What is markup?
Markup is profit divided by cost. It answers the question: how much was added on top of cost?
The formula is markup = profit / cost × 100. If cost is 100, selling price is 150 and profit is 50, the markup is 50 / 100 × 100 = 50%.
Markup uses cost as the denominator. That is why markup is usually higher than profit margin for the same transaction.
Profit margin vs markup
Profit margin and markup are often confused. Both express profit as a percentage, but they use different bases: selling price for margin and cost for markup.
- Profit margin = profit / selling price × 100
- Markup = profit / cost × 100
- At cost 100 and selling price 150, markup is 50% but profit margin is 33.33%.
- Adding 40% to cost does not mean you achieved a 40% profit margin.
If your target is 40% profit margin, adding only 40% to cost is not enough. For a 40% target margin, selling price is cost / 0.60.
Calculating selling price from cost and markup
In cost + markup mode, you enter cost and the percentage you want to add on top of cost. The tool calculates selling price, profit and the resulting profit margin.
For example, if cost is 100 and markup is 50%, selling price is 150. Profit is 50, but profit margin is 33.33%, not 50%.
Calculating selling price from target margin
In target margin mode, you enter cost and the profit margin you want to achieve. The calculator returns the selling price needed to reach that margin.
The key formula is selling price = cost / (1 - target margin). If cost is 100 and target margin is 40%, selling price is 100 / 0.60 = 166.67.
For a 40% target margin, selling at 140 is not enough. At 140 selling price, profit is 40 but margin is 40 / 140 = 28.57%.
How should a loss be interpreted?
In cost + selling price mode, if selling price is below cost, the calculator shows the result as a loss. Profit is negative, and margin/markup are interpreted in the negative direction.
Loss results should be reviewed carefully, especially for campaigns, clearance sales, incorrect cost entries or real profitability after commissions and shipping.
Which costs should be included?
The cost field represents the unit cost value you decide to use. For real commercial profitability, you may need to include purchase cost, shipping, packaging, marketplace commission, payment fees, advertising cost and return risk.
The calculator does not ask for these items separately. For a more realistic result, decide whether you want to include them in the cost value before calculating.
Are VAT, taxes and commissions included?
No. The tool does not automatically calculate VAT, income tax, withholding, marketplace commission, payment-provider fee or shipping charge.
Is the selling price VAT-inclusive or VAT-exclusive? Does cost include all expenses? If the two fields are not chosen consistently, profit and margin can be misleading.
Relation between profit and discount calculation
Discount directly reduces selling price, so it affects profit and profit margin. To check whether a product remains profitable after a discount, first calculate the discounted price and then calculate profit using that price.
In e-commerce, high discounts may look attractive but still produce a loss after commission, shipping and advertising costs. Profit should be checked again after discount.
What does this tool not calculate?
- It does not calculate VAT or taxes.
- It does not separately calculate marketplace commission, payment fees or shipping.
- It does not add advertising cost, return rate or inventory cost.
- It does not produce full accounting net profit.
- It does not calculate ROI, break-even or cash flow.
- It does not handle multi-product, quantity, basket or inventory calculations.
Frequently Asked Questions
How is profit calculated?
Profit is selling price minus cost. If selling price is below cost, the result is a loss.
How is profit margin calculated?
Profit margin = profit / selling price × 100.
How is markup calculated?
Markup = profit / cost × 100. It shows the percentage added on top of cost.
Are markup and profit margin the same?
No. Markup is based on cost, while profit margin is based on selling price. They produce different percentages.
How do I find selling price from target profit margin?
Use selling price = cost / (1 - target margin). For a 40% target margin, divide cost by 0.60.
Are VAT and commissions included?
No. VAT, commissions, shipping, advertising and tax items are not added automatically. Use consistent cost and selling price values.