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How to calculate daily shop profit, with a formula you can use tonight

Cash in the drawer is not profit. To know whether the day made money, use a simple formula. This guide shows how to calculate daily shop profit in three lines, with a worked example, the mistakes that inflate it and how the app does it automatically.

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Home screen: today's sales, money to receive and quick actions
3 linessales, cost, expenses
Net profitthe real number
Best forOwners who want to know if today really made money
Works onPaper, calculator or the app
Not forTax calculations

1The three-line formula

Daily profit has three steps. First, sales for the day. Second, subtract the cost of the goods you sold, which gives gross profit. Third, subtract the day's share of running costs such as rent, wages and electricity, which gives net profit. If you stop at the second line, you overstate how well the shop is doing.

From sales to net profit

Example day

SalesRs 84,000Cost of goodsRs 71,400Gross profitRs 12,600Running costsRs 9,200Net profitRs 3,400
Illustrative example numbers to show the idea, not results from a real shop.

2A worked example

LineRs
Sales for the day84,000
Cost of goods sold71,400
Gross profit12,600
Rent, wages, bills (day share)9,200
Net profit3,400

A day that looked like Rs 84,000 earned Rs 3,400. That is the number to plan with.

Counting the drawer

  • Cash in the drawer treated as profit
  • Credit sales counted as money
  • Small costs forgotten

Counting profit

  • Sales minus cost of goods
  • Running costs subtracted
  • Credit tracked separately

3Finding the cost of goods sold

This is the hard part by hand. For each item sold, you need what it cost you, not what it sells for. If sugar cost Rs 160 a kilo and you sold 40 kg, the cost is Rs 6,400. Doing this for dozens of items is slow, which is why many owners skip it. Software with purchase costs does it for every sale.

🧮 Profit and margin calculator

Profit per unit
Margin
Markup
Total profit

Margin is profit as a share of the selling price. Markup is profit as a share of cost.

4Spreading the monthly costs

Rent and salaries are monthly. Divide them by the days you open. Rs 180,000 of monthly costs over 26 days is about Rs 6,900 a day. Add daily costs such as tea, transport and generator fuel. Use the same method every day so you can compare days fairly.

5Mistakes that inflate profit

  • Counting credit sales as cash you can spend.
  • Forgetting small daily expenses.
  • Using last month's cost when prices rose.
  • Ignoring waste, expiry and damage.
  • Taking money for the house from the drawer without writing it.

6Let the app do the sum

Dukaan POS records the cost of each item, so the gross profit report appears with every sale. Expenses and salaries come off in the net profit report, together with stock losses and cash differences. Read the sales and profit reports or try it free for seven days.

7A week of daily profit

Profit swings from day to day, so look at a week. Suppose Monday earns Rs 2,100, Friday Rs 6,800 and Sunday loses Rs 900 because sales were low and costs stayed fixed. Adding the week gives a steadier picture than any single day. Many owners discover that one or two strong days carry the week, which tells them where to concentrate staff and stock.

★Get started in four steps

  1. Add up the day's salesCash and credit shown separately.
  2. Find the cost of goods soldWhat the items cost you.
  3. Subtract the day's running costsRent, wages, bills share.
  4. Compare with other daysUse the same method each time.

!Good to know before you start

  • Profit before tax; the app does not calculate tax.
  • Accuracy depends on recording purchase costs and expenses.
  • Net profit also includes stock losses and cash differences that you record.

?Questions about how to calculate daily shop profit

What is the difference between gross and net profit?

Gross profit is sales minus the cost of the goods sold. Net profit also subtracts running costs.

Should credit sales count as profit?

They count as sales, but the cash arrives later. Track what is owed separately.

How do I handle monthly rent in a daily figure?

Divide the monthly cost by the number of days you open.

How do I know my cost of goods?

Use the price you paid for each item, from your purchase records.

Can software calculate it?

Yes. Dukaan POS shows gross and net profit from the records you make.

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