Profit Calculator
From revenue and cost, compute the profit (the surplus of revenue over cost).
Input Data
Results
At a glance:Profit is what remains after cost is paid from revenue. Profit = revenue − cost. Keep the cost scope consistent with the revenue (same period and same items) so the profit is comparable over time.
Formula
Profit = revenue − cost.
$$\text{Profit} = \text{Revenue} - \text{Cost}$$How to Use
- Enter the revenue.
- Enter the cost on the same basis.
- Read the profit.
FAQ
What is the difference between gross profit and net profit?
Gross profit = revenue − cost of goods sold (COGS), reflecting the surplus from production/sales before operating expenses, interest and tax. Net profit = revenue − all costs (COGS + operating expenses + interest + tax), the final 'bottom line'. The gap is the layer of operating, financing and tax costs. A firm can have a fat gross profit but a thin net profit if expenses are heavy.
What are the gross margin and net margin?
Gross margin = gross profit ÷ revenue; net margin = net profit ÷ revenue. They show how much profit each dollar of sales retains at the gross and net levels. Compare margins over time and against peers to judge profitability and cost control.
Why does a high gross margin not mean high net profit?
Because after gross profit come operating expenses, interest and tax that can erode it. High gross margin only means the product is profitable to make; net profit depends on keeping the later costs in check. A common trap is 'good gross, bad net' — booming sales but bloated overhead, debt interest or a tax hit leaves little profit.
How do I use this for business decision-making?
Use it to set prices and control costs. First, ensure the gross margin covers COGS and leaves room for operating expenses — if gross margin is too thin, raising price or cutting COGS is the priority. Second, watch the operating-expense ratio; if net margin is low, trim overhead or improve efficiency. Third, track margins over time: a falling gross margin signals rising COGS or price pressure; a falling net margin with stable gross shows expense creep. Combine with this site's markup and break-even calculators for full pricing decisions.
Does the profit here include Hong Kong profits tax?
This calculator's net profit = revenue − cost, i.e. the pre-tax profit (it does not include a separate tax deduction unless you enter tax as part of cost). Hong Kong's profits tax is a two-tier rates system: 8.25% on the first HK$2m of assessable profits for corporations (7.5% for unincorporated), and 16.5% (15%) on the portion above. The assessable profit and the accounting profit may differ (some expenses are not deductible, some items are adjusted), so the actual tax follows the Inland Revenue Department's assessment. To see the post-tax figure, deduct the tax from this profit; the gross profit here excludes tax and the net figure here is pre-tax. Use this for a quick operating-profit check, not a substitute for professional tax filing.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.