What is the Profit Calculator?
Knowing your break-even point (how many units you must sell before you make any profit) is the first step in running a shop, online store or small factory. The profit calculator works it out with your revenue, gross profit and net profit.
Enter selling price, cost per unit, units sold and fixed costs. For pricing a single product use the Profit Margin Calculator; for packaging costs per unit use the Packaging Cost Calculator.
How to use the Profit Calculator
- Enter the selling price per unit.
- Enter the cost per unit (materials, stock, packaging).
- Enter units sold.
- Enter fixed costs such as rent, salaries and ads.
- Read profit, margin and break-even units and revenue.
Formula
Profit = (Price − Unit cost) × Quantity − Fixed costs · Break-even units = Fixed costs ÷ (Price − Unit cost)
Example
Selling 500 units at Rs 1,500 that cost Rs 900 each, with Rs 150,000 fixed costs: revenue Rs 750,000, net profit Rs 150,000 (20% margin). Break-even is 250 units.
Ways to reach break-even sooner
- Raise the price slightly if customers value your product.
- Lower the unit cost by buying in bulk.
- Cut fixed costs such as rent or unused subscriptions.
- Sell more higher-margin products.
You may also need
People who use the Profit Calculator often need these related tools too:
- Invoice Generator: Create a professional invoice with your logo, client details, line items, tax, discount and payment details, preview it live and download a PDF.
- Payslip Generator: Make a professional salary slip with company and employee details, earnings, deductions and net pay written in words, then download it as PDF.
Frequently asked questions
What is a break-even point?
The number of units you must sell so that revenue covers all costs, with zero profit or loss.
What is contribution margin?
Selling price minus variable cost per unit; it pays for fixed costs and then profit.
What is the difference between gross and net profit?
Gross profit subtracts only product costs; net profit also subtracts fixed costs.
What if my price is lower than my cost?
Each sale loses money, so you can never break even. The calculator shows "never".
Does it include tax?
No. Use the VAT calculator to add or remove sales tax from your prices.
Is the Profit Calculator free to use?
Yes. The Profit Calculator on Custom Converter is completely free, with no sign-up, no daily limit and no watermark.
Does the Profit Calculator work on mobile phones?
Yes. It is built mobile-first and works on Android phones, iPhones, tablets and computers in any modern browser, with no app to install.