Profit Calculator
The Number That Decides Whether the Quarter Was Good
Profit is what's left after expenses are subtracted from revenue — the simplest and most important number in a business's finances. This calculator takes revenue and expenses and returns not just the profit figure but its margin and status, flagging clearly whether the period ended in profit, loss, or exactly break-even.
The Formula
Profit = Revenue − Expenses
Profit Margin = (Profit / Revenue) × 100
Profit Margin = (Profit / Revenue) × 100
Where This Calculation Matters
- Monthly and quarterly close — the first calculation run once revenue and expenses for a period are finalized.
- Freelance and contract work — checking whether a project's fee actually covered its costs after the fact.
- Budget vs. actual reviews — comparing projected profit against what actually materialized.
- Small business tax prep — net profit is the starting figure for most self-employment tax calculations.
Profit, Loss, or Break-Even
The sign of the result tells the whole story: positive profit means revenue exceeded expenses, negative means the business operated at a loss for the period, and exactly zero means revenue and expenses matched precisely.
| Result | Status | What it means |
|---|---|---|
| Positive | Profit | Revenue exceeded expenses for the period |
| Zero | Break-Even | Revenue exactly matched expenses |
| Negative | Loss | Expenses exceeded revenue for the period |
How to Use This Calculator
- Enter Total Revenue ($) for the period.
- Enter Total Expenses ($) for the same period.
- Select Calculate to see profit, profit margin, and status (Profit, Loss, or Break-Even).
Related Calculations
Break the margin down further with the Profit Margin Calculator, or find the sales volume needed to reach zero with the Break-Even Calculator.