Profit Growth Calculator

Analyze your bottom line. Determine the percentage growth of your net profit, gross margin, or operating income over time.

Calculate Profit & Margin Expansion

Quick Answer

Profit growth is more important than just revenue growth because it measures what you actually keep. You can have high sales but low profit if expenses are too high. Profit growth proves your business model is sustainable and efficient.

Profit Growth Calculator

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Calculate Profit

  1. Enter profit from the previous period (e.g., last month/year).
  2. Enter output from the current period.
  3. Calculate the percentage growth.

Growth Formula:

Profit Growth % = ((Current Profit − Previous Profit) ÷ Previous Profit) × 100

The Ultimate Business Metric

Revenue is vanity, profit is sanity. Tracking percentage growth in profits tells you if your business is actually becoming more successful, not just bigger.

Profit Squeeze

Warning Sign:

If Revenue grows 20% but Profit only grows 5%, your margins are shrinking ("Profit Squeeze"). Costs are eating up your gains.

Business Scenarios

$10,000 to $12,500

Result: 25% growth

$50,000 to $45,000

Result: -10% decline

$100,000 to $150,000

Result: 50% growth

$500 to $1000

Result: 100% growth

$250,000 to $300,000

Result: 20% growth

-$5000 to $0

Result: Break-even reached

$1M to $1.1M

Result: 10% growth

$2000 to $2100

Result: 5% growth

$8000 to $6000

Result: -25% decline

$75,000 to $90,000

Result: 20% growth

$150k to $200k

Result: 33.33% growth

$1200 to $1800

Result: 50% growth

$30k to $45k

Result: 50% growth

$400 to $420

Result: 5% growth

$60k to $66k

Result: 10% growth

Profit FAQ

Is profit growth same as revenue growth?

No. Revenue is total sales. Profit is what is left after expenses. You can have high revenue growth but zero profit growth if costs rise too fast.

What is gross vs net profit?

Gross profit is Sales minus Cost of Goods Sold. Net profit is what remains after ALL expenses (rent, salaries, taxes, etc.).

How do I calculate margin percentage?

Margin is (Profit / Revenue) * 100. Growth is ((New Profit - Old Profit)/Old Profit) * 100.

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