QuickCalc

Profit Calculator

Quickly calculate profit and profit margin from revenue and cost.

Reviewed by The QuickCalc Editorial Team · Last updated · About our methodology

Enter your details

Result

Profit
R90 000,00
Profit margin
36,00%

Inputs & results at a glance

Updates live as you change the form above.

ItemTypeValue
RevenueInputR250 000,00
CostInputR160 000,00
ProfitResultR90 000,00
Profit marginResult36,00%

About this calculator

Profit = Revenue − Cost. Margin = Profit ÷ Revenue × 100.

Profit is the difference between what you earn (revenue) and what it costs you to earn it (cost). This calculator gives you both the rand profit and the profit margin as a percentage, using the formulas Profit = Revenue − Cost and Margin = (Profit ÷ Revenue) × 100.

If you enter only the cost of goods sold (COGS) — the direct cost of producing what you sold — the result is your gross profit and gross margin. If you enter total expenses including overheads, salaries, marketing and tax, you get net profit and net margin. Both are useful, but they answer different questions: gross margin tells you how efficient your product economics are; net margin tells you how profitable the whole business is.

Profit margin is a quick health check that lets you compare products, time periods or competitors regardless of size. South African retail businesses often run on net margins in the single digits, while service and software businesses can comfortably hit 20% or more. Use this calculator alongside the Break-even Calculator to set realistic pricing.

How to use it

  1. 1Enter your revenue. Total sales or income for the period.
  2. 2Enter your cost. COGS for gross profit, or total expenses for net profit.
  3. 3Read profit and margin. Use the margin to compare across products or periods.

How it works

Profit and margin are two sides of the same number. Profit is the absolute rand amount you keep after subtracting cost from revenue. Margin is that profit expressed as a percentage of revenue, which makes it comparable across products, months and businesses of very different sizes. The calculator computes both from the two figures you enter: revenue (what you charged) and cost (what it cost you to earn that revenue).

Which cost you enter changes the meaning of the answer. If you enter only the direct cost of goods sold (COGS) — raw materials, packaging, direct labour, per-transaction payment fees — the calculator gives you gross profit and gross margin, which measure product-level efficiency. If you enter total expenses including rent, salaries, marketing and tax, you get net profit and net margin, which measure whether the whole business is profitable. Retail businesses often run on single-digit net margins, while services and software regularly clear 20%+, so always compare like with like when benchmarking.

Formula

Profit = Revenue − Cost; Margin % = (Profit ÷ Revenue) × 100

Revenue = total income; Cost = COGS for gross profit, or total expenses for net profit; Margin = profit as a % of revenue.

Worked examples

Product with COGS

Revenue R100, cost R60. Gross profit R40, gross margin 40%.

Small business net profit

Monthly revenue R250,000, total expenses R215,000. Net profit R35,000, net margin 14%.

Frequently asked questions

Do I get gross profit or net profit?

Depends on the cost you enter. Enter cost of goods sold (COGS) for gross profit and gross margin. Enter total expenses (COGS + overheads + salaries + marketing + tax) for net profit and net margin.

Should I include VAT?

Use VAT-exclusive figures if you are VAT-registered, since output VAT is not your money. If you are not VAT-registered, use the amount you actually banked and the amount you actually paid.

What is a good profit margin?

It varies wildly by industry. South African retail businesses often run on single-digit net margins; services and software regularly clear 20% or more. Compare only against businesses in the same sector.

How is margin different from mark-up?

Margin is profit as a % of revenue. Mark-up is profit as a % of cost. A 50% mark-up on R100 cost gives a R50 profit on R150 revenue, which is a 33.3% margin — same money, different denominator.

Why did my margin drop even though revenue grew?

Usually because variable or fixed costs grew faster than revenue. Check whether input prices rose, whether you discounted more heavily, or whether new overheads were added.

How do I use this alongside the Break-even Calculator?

Use break-even to work out the minimum sales you need to cover costs, then use the profit calculator to test what your profit and margin become at forecasted sales above that minimum.

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