Profit Calculation:

  • To calculate profit, subtract the cost of making a product from the selling price of the product.
  • The formula for profit is: Profit = Selling Price – Cost Price. Example: Let’s say you sell a product for $50 and it costs you $30 to make that product. The profit would be $50 – $30 = $20.

Loss Calculation:

  • Loss occurs when the cost price of a product is higher than the selling price.
  • To calculate loss, subtract the selling price from the cost price and take the maximum of 0 and the result to avoid negative values.
  • The formula for loss is: Loss = Max(0, Cost Price – Selling Price). Example: If you sell a product for $20 but it costs you $25 to make that product, the loss would be Max(0, $25 – $20) = $5.

CPA (Cost Per Acquisition) Calculation:

  • CPA measures the cost incurred to acquire a single customer or make a sale.
  • To calculate CPA, divide the total advertising spend by the number of total sales.
  • The formula for CPA is: CPA = Total Advertising Spend / Number of Total Sales. Example: Let’s say you spend $1000 on advertising and you get 50 sales. The CPA would be $1000 / 50 = $20.

By using these calculations, you can analyze the profitability of your business and the efficiency of your advertising campaigns. Profit helps you understand how much you’re earning from each sale, while loss indicates when your costs exceed revenue. CPA allows you to evaluate the effectiveness of your marketing efforts by determining how much you’re spending t