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MDES Smart Tools
SW

Profit Calculator

Revenue is not profit. This calculator shows what is left after paying for the goods you sold (gross profit) and after your running costs (estimated net profit).

Used only to label results. No exchange-rate conversion is performed.

Result

Fill in the fields to see your result.

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How to use

  1. Choose the currency label.
  2. Enter total sales for the period.
  3. Enter the cost of the goods you sold in that period.
  4. Add operating expenses such as rent, wages and transport.

Worked example

A shop sells TZS 5,000,000 in a month. The stock sold cost TZS 3,000,000 and rent, wages and transport cost TZS 800,000. Gross profit = TZS 2,000,000 (40% margin). Estimated net profit = TZS 1,200,000 (24% margin).

How it works

Gross profit = Revenue − Cost of goods sold. Estimated net profit = Gross profit − Operating expenses. Margin = Profit ÷ Revenue × 100.

Limitations

This is a simple estimate. It does not account for taxes, loan interest, depreciation or unpaid invoices unless you add them yourself. Consult an accountant for official figures.

Frequently asked questions

What is the difference between gross and net profit?

Gross profit only subtracts the direct cost of what you sold. Net profit also subtracts the costs of running the business.

Can the result be negative?

Yes. A negative result means a loss for the period.

Does it convert currencies?

No. The currency is only a label; no exchange rates are used.