Profit and Loss Calculator
Enter the cost and the selling price to see whether you make a profit or a loss, how much, the margin on sales and the markup on cost. Add units and other expenses for the net result and the break-even price.
- Sales250.00 ₺
- Cost of goods sold175.00 ₺
- Gross profit / loss75.00 ₺
- Margin (on sales)30%
- Markup (on cost)42.86%
- Break-even unit price175.00 ₺
How it is calculated
Profit and loss are the same calculation: above cost it is a profit, below cost a loss, and the tool shows either. The order follows the summary income statement of the Turkish uniform chart of accounts: net sales minus cost of sales gives gross profit or loss, minus operating expenses gives operating profit or loss. Under the communiqué’s account-plan notes (60- Gross sales) VAT is not part of gross sales, so enter prices before VAT. Margin is on the selling price and markup on cost, so for the same profit the margin is always smaller. The result is before income or corporate tax.
Gross profit = (Price − Cost) × Units; Net profit = Gross − Expenses; Margin = Net ÷ Sales; Markup = Net ÷ (Cost × Units); Loss rate (on cost) = Net loss ÷ (Cost × Units); Break-even = Cost + Expenses ÷ Units- Subtract the cost from the price and multiply by the units: gross profit or loss.
- Take off the other expenses of these sales: the net result.
- Divide the net result by sales (margin) and by the cost of goods sold (cost × units): the markup in profit, the loss rate on cost in loss.
Example
Buying at ₺175 and selling at ₺250 gives ₺75 profit: a margin of 75 ÷ 250 = 30% and a markup of 75 ÷ 175 = 42.86%. Selling 100 with ₺2,000 of expenses leaves 7,500 − 2,000 = ₺5,500 net, and the break-even price is 175 + 20 = ₺195.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit over the selling price; markup is profit over cost. Cost ₺100 sold at ₺150 is ₺50 profit: a margin of 50 ÷ 150 = 33.33% and a markup of 50 ÷ 100 = 50%.
How is a loss percentage worked out?
The tool gives the loss rate on cost: the net loss divided by the cost of goods sold (unit cost × units). Bought at ₺200 and sold at ₺170, the loss is ₺30 and the loss rate on cost is 30 ÷ 200 = 15%. Other expenses make the loss bigger, but the divisor stays the cost of the goods. The margin row relates the same result to sales and turns negative in a loss.
What is the break-even price?
The unit price that makes neither profit nor loss: unit cost plus each unit’s share of expenses. With ₺175 cost, ₺2,000 expenses and 100 units it is 175 + 20 = ₺195.
Can I use prices including VAT?
Enter prices before VAT. The VAT you collect is not part of your sales, and with VAT included the profit looks bigger than it is. Use the VAT calculator to take it out.