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PROFIT CALCULATOR

INSTRUCTIONS

This calculator is designed to help a business to determine the point at which a product or service becomes profitable.  It can also be used to calculate total profits from a sales scenario, the optimal price for the product or service and help a business to assess the benefits of various business proposals.

  1. THIS IS A JAVA-BASED CALCULATOR. Recent changes to Java security mean it won't run in most newer browsers. The best option is to use Internet Explorer which still runs Java. If you're using the new Microsoft Edge browser, you can still open this calculator in Internet Explorer. Select the More option (...) located at the top of the Edge browser and click on Open with Internet Explorer.

  2. Enter your fixed and variable costs for a product or service together with expected prices and sales volumes.

  3. Click once on the "Calculate" button to calculate your result.

  4. Click once on the "Full Report" button to see a detailed breakdown of the calculations.

  5. Close this window to return to the Tools page.

  

This calculator couldn't load because either:

  1. Your browser doesn't support Java; or
  2. Your browser supports Java but Java isn't turned on.

You'll need to turn on Java in your browser or open a different browser to use this calculator.

  

NOTES

You may need to authorize Java to run this calculator. Alternatively, you may need to log into your Java Control Panel and configure your security settings to allow Java to run. To do this, go to Windows Control Panel or the Apps list, then click "Java" and configure. Under the "Security" tab, click "Enable Java" and/or add http://www.calculatorweb.com/ under "Exception Site List". You may need to reload the page for the changes to take effect.

Variable Unit Cost: 
Costs that vary directly with the production of one additional unit.

Fixed Cost: 
The sum of all costs required to produce the first unit of a product. This amount does not vary as production increases or decreases.

Expected Unit Sales: 
Number of units of the product that are projected to be sold over a specific period of time.

Price per Unit: 
The amount of money charged for each unit of a product or service.

Total Variable Costs: 
The product of expected unit sales and variable unit cost.
(Variable Unit Cost x Expected Unit Sales)

Total of all Costs: 
The sum of the fixed and total variable costs for any given level of production.
(Total Variable Cost + Fixed Cost)

Total Revenue:
Total product of expected unit sales and price per unit.
(Price x Expected Unit Sales)

Profit (or Loss): 
The financial gain (or loss) resulting from revenues after subtracting all associated costs.
(Total Revenues - Total Costs)

Breakeven: 
Number of units required to be sold in order to produce a profit of zero.
(Breakeven = Fixed Cost / (Price per Unit - Variable Unit Cost))

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Last modified: Wednesday, June 28, 2017.