What Is the Profit and Loss Percentage Calculator?
This calculator works out whether a transaction resulted in a profit or a loss and expresses the result as a percentage of the cost price. It is a universal financial and business tool useful for retailers, traders, students, and anyone buying and selling goods. By comparing the cost price (CP) — what you paid — against the selling price (SP) — what you received — it tells you both the absolute gain or loss and the relative percentage.
How to Use It
Enter the Cost Price (the price at which you bought the item) and the Selling Price (the price at which you sold it). The calculator instantly determines whether you made a profit or a loss, shows the amount, and computes the percentage relative to the cost price. If SP equals CP, the result is a break-even.
The Formula Explained
Profit or loss percentage is always calculated on the cost price, not the selling price. When SP > CP you have a profit; when CP > SP you have a loss.
$$\text{Profit\%} = \frac{\text{SP} - \text{CP}}{\text{CP}} \times 100$$$$\text{Loss\%} = \frac{\text{CP} - \text{SP}}{\text{CP}} \times 100$$The numerator is the gain or loss in money, and dividing by CP normalises it so different-sized deals can be compared fairly.
Worked Example
Suppose you buy an item for a cost price of 200 and sell it for 250. The profit amount is \(250 - 200 = 50\). The profit percentage is $$\left(\frac{50}{200}\right) \times 100 = 25\%$$ So you earned a 25% profit. If instead you sold it for 150, the loss is \(200 - 150 = 50\), giving a loss percentage of $$\left(\frac{50}{200}\right) \times 100 = 25\%$$
FAQ
Is the percentage based on cost or selling price? By standard convention, profit and loss percentages are calculated on the cost price.
What does break-even mean? Break-even occurs when the selling price equals the cost price, so the percentage is 0% — no profit, no loss.
Can I use it for any currency? Yes. The calculator is currency-neutral; just enter both prices in the same currency.
