The profit percentage is a key financial metric that indicates how much profit a business makes relative to its cost. It's expressed as a percentage of the cost price. A positive profit percentage signifies a profitable venture, while a negative percentage indicates a loss. Understanding this calculation is crucial for pricing strategies, financial analysis, and overall business health assessment.
The formula is straightforward and involves two main steps:
Calculate the absolute profit or loss: This is the difference between the selling price and the cost price.
Profit/Loss = Selling Price - Cost Price
Calculate the profit percentage: This is the absolute profit (or loss) divided by the cost price, then multiplied by 100 to express it as a percentage.
Profit Percentage = ((Selling Price - Cost Price) / Cost Price) * 100
This means the business made a 50% profit on the cost of the product. If the selling price was $90.00 and the cost price $100.00, the profit/loss would be -$10.00, and the profit percentage would be ((-$10.00 / $100.00) * 100) = -10.0%, indicating a 10% loss.
function calculateProfitPercentage() {
var sellingPriceInput = document.getElementById("sellingPrice");
var costPriceInput = document.getElementById("costPrice");
var profitPercentageResultDiv = document.getElementById("profitPercentageResult");
var profitDifferenceDiv = document.getElementById("profitDifference");
var sellingPrice = parseFloat(sellingPriceInput.value);
var costPrice = parseFloat(costPriceInput.value);
// Clear previous results and styles
profitPercentageResultDiv.innerText = "–.–%";
profitPercentageResultDiv.style.color = "#28a745"; // Default to green for potential profit
profitDifferenceDiv.innerText = "Profit/Loss: $0.00";
profitDifferenceDiv.style.color = "#333";
// Input validation
if (isNaN(sellingPrice) || isNaN(costPrice)) {
alert("Please enter valid numbers for both Selling Price and Cost Price.");
return;
}
if (costPrice === 0) {
if (sellingPrice > 0) {
profitPercentageResultDiv.innerText = "Infinite%";
profitDifferenceDiv.innerText = "Profit: $" + sellingPrice.toFixed(2);
profitDifferenceDiv.style.color = "#28a745";
} else if (sellingPrice = 0) {
profitPercentageResultDiv.innerText = profitPercentage.toFixed(2) + "%";
profitPercentageResultDiv.style.color = "#28a745"; // Success green for profit
profitDifferenceDiv.style.color = "#28a745";
} else {
profitPercentageResultDiv.innerText = profitPercentage.toFixed(2) + "%";
profitPercentageResultDiv.style.color = "#dc3545"; // Danger red for loss
profitDifferenceDiv.style.color = "#dc3545";
}
}