# Sales Profit Calculator

## About Sales Profit Calculator (Formula)

The Sales Profit Calculator is a tool used to determine the profit generated from a sales transaction. It is commonly used in business and finance to assess the profitability of products or services. The formula for calculating the sales profit involves subtracting the cost of goods sold (COGS) from the total sales revenue.

Formula for calculating sales profit:

Profit = Total Sales Revenue – Cost of Goods Sold (COGS)

In this formula, “Total Sales Revenue” represents the total amount earned from selling a product or service, and “COGS” represents the cost incurred in producing or acquiring the goods sold, including direct costs such as materials, labor, and manufacturing expenses. Subtracting the COGS from the total sales revenue provides the profit generated from the sales transaction.

For example, suppose a company generates \$10,000 in sales revenue and incurs \$6,000 as the cost of goods sold. The sales profit would be calculated as follows:

Profit = \$10,000 – \$6,000 = \$4,000

This means that the company has made a sales profit of \$4,000.

The Sales Profit Calculator simplifies the process of determining the profit generated from a sales transaction, aiding in financial analysis and decision-making. By inputting the total sales revenue and the cost of goods sold, the calculator quickly provides the sales profit, enabling businesses to assess their profitability and make informed strategic choices.