GST Profit Calculator

About GST Profit Calculator

This GST profit calculator helps businesses determine their actual profit margin after accounting for GST. Whether you work with GST inclusive or exclusive prices, this tool gives you clear insights into your profitability.

How to Use the Profit Calculator

Enter Cost Price: Your purchase or manufacturing cost per unit
Enter Selling Price: The price at which you sell to customers
Select GST Rate: Choose the applicable GST rate for your product/service
Include GST Option: Check if your prices already include GST
Calculate: Get detailed profit analysis instantly

Profit Calculation Formulas

For GST Inclusive Prices:

Base Amount = Price / (1 + GST Rate/100)
Gross Profit = Selling Price (Excl.) - Cost Price (Excl.)
Profit Margin = (Gross Profit / Selling Price Excl.) × 100
Markup = (Gross Profit / Cost Price Excl.) × 100

For GST Exclusive Prices:

Gross Profit = Selling Price - Cost Price
Profit Margin = (Gross Profit / Selling Price) × 100
Markup = (Gross Profit / Cost Price) × 100

Understanding Profit Metrics

Gross Profit: The absolute difference between selling price and cost price (before GST).

Profit Margin: Profit as a percentage of selling price. This shows what percentage of each sale is profit.

Markup: Profit as a percentage of cost price. This shows how much you're marking up from your cost.

Net Profit After GST: Actual profit after accounting for GST liability and input tax credit.

Tips for Better Profitability

Always claim available Input Tax Credit (ITC) to reduce GST burden
Review your pricing strategy regularly to maintain healthy margins
Consider bulk purchase discounts to reduce cost price
Factor in all costs (transport, storage, overhead) in your cost price
Monitor competitor pricing while maintaining profitability

Frequently Asked Questions

How do I calculate profit after GST?

To calculate profit after GST: First, determine your cost price and selling price (both GST inclusive). Then subtract cost from selling price to get gross profit. The profit percentage = (Gross Profit / Cost Price) × 100.

Should I calculate profit on GST inclusive or exclusive price?

It depends on your business model. If you sell at GST inclusive prices to customers, calculate profit on inclusive amounts. If you quote exclusive prices and add GST separately, use exclusive amounts for accurate profit calculation.

What is the difference between markup and profit margin?

Markup is calculated on cost price: (Selling Price - Cost) / Cost × 100. Profit margin is calculated on selling price: (Selling Price - Cost) / Selling Price × 100. Markup is usually higher than margin percentage.

Does GST affect my profit margin?

GST itself doesn't affect profit if you charge it separately and claim input tax credit. However, if you absorb GST in your selling price or can't claim full ITC, it impacts your margins.

Profit Analysis