Frozen Food Profit Calculator
Work out gross profit, operating profit, profit margin and break-even for frozen food, with spoilage and unsold stock counted properly.
Your results
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It shows whether a batch of frozen stock actually makes money. It separates gross profit (sales minus the cost of what you sold) from operating profit (after spoilage and running costs), and it keeps unsold cartons out of profit.
The inputs
- Cartons bought, purchase price and selling price: your per-carton numbers in one currency.
- Expected spoilage: the share of stock you expect to lose, based on your own records.
- Cartons still unsold: stock left in the freezer. It counts as inventory, not profit.
- Transport, electricity or generator, and other costs: the running costs for this batch.
The formulas
- Cartons sold = cartons bought − spoiled cartons − unsold cartons
- Gross profit = cartons sold × (selling price − purchase price)
- Operating profit = gross profit − spoilage cost − running costs
- Margin = operating profit ÷ revenue
- Break-even cartons = (spoilage cost + running costs) ÷ (selling price − purchase price)
Worked example (illustrative, not typical prices)
Buy 10 cartons at 40,000, sell at 48,000, with 10% spoilage and none unsold. Nine cartons sell for 432,000, with gross profit of 72,000. Spoilage costs 40,000 and transport and power cost 25,000, so operating profit is 7,000, a margin of about 1.6%. Break-even is about 8.1 cartons sold.
What to watch
A small price gap per carton leaves little room for error. Spoilage, fuel and transport can erase it quickly, so record every loss.
Limits
This is a single-batch model. It ignores taxes, interest, price changes during the sale and the value of your own time.
FAQ
Why is spoilage a cost and not just fewer sales?
You paid for that stock. The money is gone even though nothing was sold, so it is deducted from profit.
What does a negative break-even mean?
The calculator shows break-even as not possible when the selling price is not above the purchase price. Selling at that price cannot cover costs.
Results are estimates, not professional advice. See our disclaimer. Calculator and guide by Borniventure Ugochukwu Nwakamma.