# Profit calculator

# Profit calculator

**A profit calculator is a tool used to determine the profit earned from selling goods or services. Here are the steps to use a profit calculator:**

- Determine the total revenue earned from the sale of goods or services. This can be the total amount of money received from customers for the products or services sold.
- Determine the total cost incurred to produce and sell the goods or services. This includes the cost of materials, labor, overhead, and other expenses associated with production and sales.
- Subtract the total cost from the total revenue to determine the profit earned.

**Here’s an example to illustrate how to use a profit calculator:**

Suppose a company sold 500 units of a product for $20 each, and the total cost to produce and sell the product was $7,500. To calculate the profit earned from the sale of the product, you would follow these steps:

- Determine the total revenue earned: $20 x 500 units = $10,000
- Determine the total cost incurred: $7,500
- Subtract the total cost from the total revenue to determine the profit earned: $10,000 – $7,500 = $2,500

Therefore, the profit earned from the sale of the product is $2,500.