Profit and Loss — The Foundation
| Metric | Formula | Example |
|---|---|---|
| Profit % | ((SP − CP) ÷ CP) × 100 | Buy ₹500, sell ₹650 → 30% profit |
| Loss % | ((CP − SP) ÷ CP) × 100 | Buy ₹500, sell ₹425 → 15% loss |
| Selling Price (given profit %) | SP = CP × (1 + profit%/100) | ₹500 cost + 25% profit = ₹625 |
| Cost Price (given SP and profit %) | CP = SP ÷ (1 + profit%/100) | SP ₹625 with 25% profit → CP = ₹500 |
| Gross Margin % | ((Revenue − COGS) ÷ Revenue) × 100 | Revenue ₹10L, COGS ₹6L → 40% margin |
GST and Tax Calculations
- GST on price: GST amount = Price × GST%/100. Price with GST = Price × (1 + GST%/100)
- Extract GST from GST-inclusive price: GST = Inclusive Price − (Inclusive Price ÷ (1 + GST%/100))
- Example (18% GST on ₹10,000): GST = ₹1,800, Final = ₹11,800
- Reverse (₹11,800 includes 18% GST): Original = 11800/1.18 = ₹10,000, GST = ₹1,800
Business Growth Metrics
| Metric | Formula | Example |
|---|---|---|
| Year-on-year growth | ((This yr − Last yr) ÷ Last yr) × 100 | ₹85L vs ₹72L = 18.1% growth |
| Month-on-month growth | ((This month − Last month) ÷ Last month) × 100 | ₹8.2L vs ₹7.5L = 9.3% MoM |
| Market share | (Your Sales ÷ Total Market) × 100 | ₹500Cr in ₹4,000Cr market = 12.5% |
| CAGR | (End Value ÷ Start Value)^(1/years) − 1 | ₹50Cr to ₹120Cr in 5 yr = 19.1% CAGR |
Conversion Rate and Digital Marketing
- Conversion rate: (Conversions ÷ Total Visitors) × 100. 150 sales from 6,000 visitors = 2.5% conversion
- Click-through rate (CTR): (Clicks ÷ Impressions) × 100. 450 clicks on 18,000 impressions = 2.5% CTR
- Bounce rate: (Single-page sessions ÷ Total sessions) × 100
- Churn rate: (Customers lost ÷ Customers at start of period) × 100
Salary and Compensation Percentages
- Increment %: ((New CTC − Old CTC) ÷ Old CTC) × 100
- Variable pay %: (Variable ÷ Total CTC) × 100
- TDS rate: (Annual TDS ÷ Annual Gross) × 100 — your effective tax rate
- PF as % of CTC: Employee PF = 12% of Basic; as % of ₹12L CTC (40% basic) = (57,600÷12L)×100 = 4.8% of CTC
Misleading Percentages — How to Spot Them
- "200% growth" sounds massive but could mean going from 1 customer to 3
- Relative vs absolute risk: "Risk reduced by 50%" could mean 2% to 1% (1 percentage point difference)
- Cherry-picked base year: Comparing against an exceptionally bad year makes growth look better
- Small sample %: "80% of users prefer X" from a 5-person survey
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Profit %, growth rate, GST calculation — our percentage calculator handles all 3 types!
Calculate Percentage →Frequently Asked Questions
Q: What is gross margin vs net margin?
Gross margin = (Revenue − Cost of Goods Sold) ÷ Revenue × 100. It measures production efficiency. Net margin = (Net Profit ÷ Revenue) × 100. It measures overall profitability after all expenses. A business can have high gross margin but low net margin if operating expenses are very high.
Q: How do I calculate CAGR using percentage formula?
CAGR = (Ending Value ÷ Beginning Value)^(1÷Number of Years) − 1. Then multiply by 100 for percentage. Example: Investment grows from ₹50,000 to ₹1,20,000 in 8 years. CAGR = (120000/50000)^(1/8) − 1 = (2.4)^0.125 − 1 = 1.1146 − 1 = 0.1146 = 11.46% CAGR.
⚠️ Disclaimer
This article is for educational purposes. Verify percentage calculations for critical academic, financial or professional use.