Gas Station Profit Calculator
Estimate your gas station's profit by entering your fuel sales volume, profit margin per unit, any additional revenue (like convenience store sales), and your total operating costs.
Use consistent units for volume (e.g., gallons or liters) and currency for all financial inputs. Enter non-negative numbers for Volume Sold and Operating Costs. Profit Per Unit and Other Revenue can be positive, zero, or negative.
Enter Financial Details
Understanding Gas Station Profitability
What Impacts Gas Station Profit?
Gas station profitability is a combination of fuel sales margins and revenue from other sources like convenience stores, car washes, and services. Costs include fuel purchase, labor, rent, utilities, insurance, and maintenance.
Key Profit Metrics
- Gross Fuel Profit: The direct profit made from selling fuel (Volume Sold × Profit Per Unit). This is often volatile due to market price fluctuations.
- Total Revenue: The sum of Gross Fuel Profit and all other income streams.
- Total Costs: All expenses incurred to operate the business.
- Net Profit: What's left after all costs are subtracted from total revenue. This is the true measure of the business's financial success.
Even if fuel margins are low, significant revenue from a high-performing convenience store can make a station profitable. Conversely, high operating costs can erode profit even with good sales.
Gas Station Profit Examples
Here are some example scenarios. Use your own numbers in the calculator above.
Example 1: Standard Month (Positive Profit)
Scenario: A busy month with good fuel sales and solid convenience store performance.
Inputs:
- Fuel Volume Sold: 50,000 gallons
- Profit Per Unit: $0.15 per gallon
- Other Revenue: $12,000
- Operating Costs: $10,000
Calculation:
- Gross Fuel Profit = 50,000 * $0.15 = $7,500
- Total Revenue = $7,500 + $12,000 = $19,500
- Total Costs = $10,000
- Net Profit = $19,500 - $10,000 = $9,500
Result: Net Profit = $9,500
Example 2: Low Fuel Margin Month
Scenario: Fuel prices are volatile, resulting in a very low margin on gas sales.
Inputs:
- Fuel Volume Sold: 45,000 gallons
- Profit Per Unit: $0.05 per gallon
- Other Revenue: $11,500
- Operating Costs: $9,800
Calculation:
- Gross Fuel Profit = 45,000 * $0.05 = $2,250
- Total Revenue = $2,250 + $11,500 = $13,750
- Total Costs = $9,800
- Net Profit = $13,750 - $9,800 = $3,950
Result: Net Profit = $3,950 (Convenience store saved the month)
Example 3: Fuel Loss Month
Scenario: Unexpected price drop after purchasing fuel inventory, leading to a loss per unit sold.
Inputs:
- Fuel Volume Sold: 48,000 gallons
- Profit Per Unit: -$0.02 per gallon (a loss)
- Other Revenue: $13,000
- Operating Costs: $10,500
Calculation:
- Gross Fuel Profit = 48,000 * -$0.02 = -$960
- Total Revenue = -$960 + $13,000 = $12,040
- Total Costs = $10,500
- Net Profit = $12,040 - $10,500 = $1,540
Result: Net Profit = $1,540 (Still profitable due to strong other revenue)
Example 4: High Operating Costs
Scenario: Good revenue streams, but significantly higher than usual operating expenses (e.g., major repair).
Inputs:
- Fuel Volume Sold: 55,000 gallons
- Profit Per Unit: $0.18 per gallon
- Other Revenue: $14,000
- Operating Costs: $18,000
Calculation:
- Gross Fuel Profit = 55,000 * $0.18 = $9,900
- Total Revenue = $9,900 + $14,000 = $23,900
- Total Costs = $18,000
- Net Profit = $23,900 - $18,000 = $5,900
Result: Net Profit = $5,900 (Profit is lower than expected due to high costs)
Example 5: Focus on Other Revenue
Scenario: Station heavily relies on convenience store and car wash, with minimal fuel margin focus.
Inputs:
- Fuel Volume Sold: 40,000 gallons
- Profit Per Unit: $0.08 per gallon
- Other Revenue: $18,000
- Operating Costs: $12,000
Calculation:
- Gross Fuel Profit = 40,000 * $0.08 = $3,200
- Total Revenue = $3,200 + $18,000 = $21,200
- Total Costs = $12,000
- Net Profit = $21,200 - $12,000 = $9,200
Result: Net Profit = $9,200 (Strong profit driven by other revenue)
Example 6: Break-Even Scenario (Approximate)
Scenario: Total revenue roughly equals total costs.
Inputs:
- Fuel Volume Sold: 42,000 gallons
- Profit Per Unit: $0.10 per gallon
- Other Revenue: $9,000
- Operating Costs: $13,200
Calculation:
- Gross Fuel Profit = 42,000 * $0.10 = $4,200
- Total Revenue = $4,200 + $9,000 = $13,200
- Total Costs = $13,200
- Net Profit = $13,200 - $13,200 = $0
Result: Net Profit = $0 (Broke even)
Example 7: High Volume, Thin Margin
Scenario: Station focuses on moving high volume of fuel with a very small per-unit profit.
Inputs:
- Fuel Volume Sold: 80,000 gallons
- Profit Per Unit: $0.03 per gallon
- Other Revenue: $10,000
- Operating Costs: $12,500
Calculation:
- Gross Fuel Profit = 80,000 * $0.03 = $2,400
- Total Revenue = $2,400 + $10,000 = $12,400
- Total Costs = $12,500
- Net Profit = $12,400 - $12,500 = -$100
Result: Net Profit = -$100 (Slight loss this period)
Example 8: Minimal Other Revenue
Scenario: Station primarily sells fuel, with minimal convenience store or other income.
Inputs:
- Fuel Volume Sold: 52,000 gallons
- Profit Per Unit: $0.12 per gallon
- Other Revenue: $1,500
- Operating Costs: $7,000
Calculation:
- Gross Fuel Profit = 52,000 * $0.12 = $6,240
- Total Revenue = $6,240 + $1,500 = $7,740
- Total Costs = $7,000
- Net Profit = $7,740 - $7,000 = $740
Result: Net Profit = $740 (Profit heavily dependent on fuel margin)
Example 9: Very Low Volume
Scenario: Station in a low-traffic area, low fuel volume, but managed costs well.
Inputs:
- Fuel Volume Sold: 15,000 gallons
- Profit Per Unit: $0.20 per gallon
- Other Revenue: $5,000
- Operating Costs: $4,500
Calculation:
- Gross Fuel Profit = 15,000 * $0.20 = $3,000
- Total Revenue = $3,000 + $5,000 = $8,000
- Total Costs = $4,500
- Net Profit = $8,000 - $4,500 = $3,500
Result: Net Profit = $3,500 (Profit possible even with low volume if margins and costs are managed)
Example 10: Significant Loss Scenario
Scenario: Combination of low fuel margin, average other revenue, and high unexpected costs.
Inputs:
- Fuel Volume Sold: 40,000 gallons
- Profit Per Unit: $0.01 per gallon
- Other Revenue: $10,000
- Operating Costs: $15,000
Calculation:
- Gross Fuel Profit = 40,000 * $0.01 = $400
- Total Revenue = $400 + $10,000 = $10,400
- Total Costs = $15,000
- Net Profit = $10,400 - $15,000 = -$4,600
Result: Net Profit = -$4,600 (Significant loss)
Frequently Asked Questions about Gas Station Profit
1. What is Gross Fuel Profit?
Gross Fuel Profit is the direct profit from selling fuel only. It's calculated by multiplying the total volume of fuel sold by the average profit margin per unit (gallon or liter).
2. What is Total Revenue?
Total Revenue is the sum of all income sources for the gas station, including the Gross Fuel Profit and any other revenue from sources like a convenience store, car wash, lottery tickets, etc.
3. What are Operating Costs?
Operating Costs include all the expenses required to run the gas station business. Common examples are fuel purchase costs (though factored into Profit Per Unit), rent or mortgage, salaries, utilities, insurance, maintenance, and taxes.
4. What is Net Profit?
Net Profit is the final profit figure after all operating costs are subtracted from the total revenue. It represents the actual money earned by the business before income taxes (depending on how costs are defined).
5. Can the "Profit Per Unit" be negative?
Yes. If the price you sell fuel for is less than the price you paid for it (due to market fluctuations, for example), your profit per unit will be a negative number, meaning you incurred a loss on each unit sold.
6. Why is "Other Revenue" important?
Other revenue, primarily from convenience store sales, is crucial for gas station profitability. Fuel margins are often thin and volatile, so income from snacks, drinks, merchandise, or services can significantly contribute to covering costs and generating overall profit.
7. How often should I calculate my profit?
Businesses typically calculate profit monthly or quarterly to track performance, manage costs, and make informed decisions about pricing, inventory, and operations.
8. What units should I use for volume and currency?
Use a consistent unit for fuel volume (e.g., calculate everything in gallons *or* everything in liters, but don't mix them). Use a consistent currency for all financial inputs (Profit Per Unit, Other Revenue, Operating Costs, and the results will be in that same currency).
9. What if I have zero fuel sales in a period?
If Fuel Volume Sold is 0, the Gross Fuel Profit will be 0. The calculator will still calculate Total Revenue based on Other Revenue and then subtract Operating Costs to find Net Profit, which could be positive, zero, or negative depending on those other values.
10. Does this calculator include taxes?
This calculator provides a basic operational profit estimate. It typically does *not* include income taxes, which are usually calculated based on the Net Profit figure. You should consult with a financial professional for comprehensive tax calculations.
