Profit calculator
Net profit and margin from revenue, variable costs and fixed costs.
How it works
Net profit = revenue − variable costs − fixed costs
Splitting costs into variable and fixed is what makes this more useful than subtracting one total. Variable costs move with what you sell; fixed costs are there whether you sell anything or not. The gap between revenue and variable costs is your contribution margin — the money available to cover the fixed costs, and the number that decides whether selling more actually helps.
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Frequently asked questions
- Which costs are variable?
- Anything that scales with volume: materials, packaging, payment fees, per-unit shipping, sales commission. If selling one more unit costs you nothing extra, it is fixed.
- Why does contribution margin matter?
- Because it tells you whether growth fixes anything. If contribution is negative, every extra sale increases your loss, and no amount of volume will help.
- Is this before or after tax?
- Before. Put pre-tax figures in and you get a pre-tax result; tax varies too much by structure and country to fold in here.