Gas Station Profit Calculator
Calculate the basic profit from fuel sales based on the total quantity sold, selling price per unit, and cost price per unit.
Enter the total amount of fuel sold, the price you sold it for per gallon/liter/unit, and the price you paid for it per gallon/liter/unit. Ensure consistent units for quantity and price.
Enter Fuel Sale Details
Understanding Gas Station Fuel Profit
The Basic Formula
The calculation this tool performs is the most fundamental way to determine the *gross profit* specifically from fuel sales. It is calculated using a simple formula:
Profit = (Selling Price per Unit - Cost Price per Unit) × Total Quantity Sold
The difference between the selling price and the cost price is often called the 'margin' or 'markup' per unit.
Note that this calculation only considers the direct cost of the fuel itself and the revenue from selling it. It does *not* include operating costs like rent, wages, utilities, insurance, taxes, or revenue from other sales (like convenience store items, car wash, etc.). Therefore, this result is **gross profit**, not net profit.
Gas Station Profit Examples
Click on an example to see a step-by-step calculation:
Example 1: Typical Sale Scenario
Scenario: A station sells 15,000 gallons of gasoline in a day.
1. Known Values: Total Quantity = 15,000 gallons, Selling Price = $3.80/gallon, Cost Price = $3.45/gallon.
2. Formula: Profit = (Selling Price - Cost Price) × Quantity
3. Calculation: Profit = ($3.80 - $3.45) × 15,000 = $0.35 × 15,000
4. Result: Profit = $5,250
Conclusion: The gross profit from this fuel sale is $5,250.
Example 2: Lower Margin Sale
Scenario: Selling 8,000 liters of diesel with a smaller per-unit margin.
1. Known Values: Total Quantity = 8,000 liters, Selling Price = €1.55/liter, Cost Price = €1.50/liter.
2. Formula: Profit = (Selling Price - Cost Price) × Quantity
3. Calculation: Profit = (€1.55 - €1.50) × 8,000 = €0.05 × 8,000
4. Result: Profit = €400
Conclusion: The gross profit from this diesel sale is €400.
Example 3: Sale with a Loss
Scenario: Due to a price war, fuel is sold below cost.
1. Known Values: Total Quantity = 12,000 gallons, Selling Price = $3.70/gallon, Cost Price = $3.75/gallon.
2. Formula: Profit = (Selling Price - Cost Price) × Quantity
3. Calculation: Profit = ($3.70 - $3.75) × 12,000 = -$0.05 × 12,000
4. Result: Profit = -$600
Conclusion: Selling fuel at this price resulted in a gross *loss* of $600 from fuel sales.
Example 4: High Volume, Moderate Margin
Scenario: A busy highway station sells a large volume.
1. Known Values: Total Quantity = 30,000 gallons, Selling Price = $3.65/gallon, Cost Price = $3.30/gallon.
2. Formula: Profit = (Selling Price - Cost Price) × Quantity
3. Calculation: Profit = ($3.65 - $3.30) × 30,000 = $0.35 × 30,000
4. Result: Profit = $10,500
Conclusion: High volume can lead to significant gross profit even with a moderate per-unit margin.
Example 5: Small Station, Smaller Volume
Scenario: A neighborhood station sells less fuel.
1. Known Values: Total Quantity = 6,000 liters, Selling Price = £1.40/liter, Cost Price = £1.33/liter.
2. Formula: Profit = (Selling Price - Cost Price) × Quantity
3. Calculation: Profit = (£1.40 - £1.33) × 6,000 = £0.07 × 6,000
4. Result: Profit = £420
Conclusion: Lower volume results in a smaller gross profit figure.
Example 6: Break-Even Scenario
Scenario: Selling fuel exactly at cost price.
1. Known Values: Total Quantity = 10,000 gallons, Selling Price = $4.00/gallon, Cost Price = $4.00/gallon.
2. Formula: Profit = (Selling Price - Cost Price) × Quantity
3. Calculation: Profit = ($4.00 - $4.00) × 10,000 = $0.00 × 10,000
4. Result: Profit = $0
Conclusion: Selling at cost price results in zero gross profit (break-even on the fuel itself, ignoring other costs).
Example 7: Different Units (Litres & Euros)
Scenario: Calculating profit in Europe.
1. Known Values: Total Quantity = 20,000 litres, Selling Price = €1.68/litre, Cost Price = €1.60/litre.
2. Formula: Profit = (Selling Price - Cost Price) × Quantity
3. Calculation: Profit = (€1.68 - €1.60) × 20,000 = €0.08 × 20,000
4. Result: Profit = €1,600
Conclusion: The gross profit from this fuel sale is €1,600.
Example 8: Calculating Profit on a Single Fill-up (Concept)
Scenario: While the tool is for total sales, the formula applies to any quantity. Let's see the profit on a single car filling 50 litres.
1. Known Values: Total Quantity = 50 litres, Selling Price = $1.20/litre, Cost Price = $1.15/litre.
2. Formula: Profit = (Selling Price - Cost Price) × Quantity
3. Calculation: Profit = ($1.20 - $1.15) × 50 = $0.05 × 50
4. Result: Profit = $2.50
Conclusion: The gross profit on that single 50-litre fill-up was $2.50.
Example 9: Low Cost, Moderate Margin
Scenario: Station bought fuel cheaply and sells with a standard margin.
1. Known Values: Total Quantity = 18,000 gallons, Selling Price = $4.10/gallon, Cost Price = $3.60/gallon.
2. Formula: Profit = (Selling Price - Cost Price) × Quantity
3. Calculation: Profit = ($4.10 - $3.60) × 18,000 = $0.50 × 18,000
4. Result: Profit = $9,000
Conclusion: Securing fuel at a lower cost increases the per-unit margin and total gross profit.
Example 10: Calculating Required Volume
Scenario: A station wants to make $1000 gross profit on fuel with a $0.20/gallon margin. How much fuel must they sell? (This calculator solves for Profit, but we can show the logic).
1. Known Values: Target Profit = $1000, Selling Price = $3.90/gallon, Cost Price = $3.70/gallon.
2. Calculate Margin: Margin = Selling Price - Cost Price = $3.90 - $3.70 = $0.20/gallon.
3. Formula (Rearranged): Quantity = Target Profit / Margin
4. Calculation: Quantity = $1000 / $0.20
5. Result: Quantity = 5,000 gallons.
Conclusion: They need to sell 5,000 gallons to reach their target gross profit of $1000 at this margin.
Factors Not Included
Remember, this calculator provides **gross profit** from fuel sales only. Real-world profitability involves many more factors:
- Operating Expenses: Rent/mortgage, utilities (electricity for pumps, lighting, etc.), labor costs (wages, benefits), insurance, maintenance, marketing.
- Other Revenue Streams: Sales from convenience stores, car washes, lottery tickets, food service, ATM fees, etc. These often have higher margins than fuel.
- Credit Card Fees: A significant cost, as fees are often a percentage of the transaction value.
- Taxes: Various taxes apply to fuel sales and business income.
- Inventory Management: Costs associated with storing fuel.
A gas station's true **net profit** is the gross profit (from fuel and other sources) minus all operating expenses and taxes.
Frequently Asked Questions about Gas Station Profit
1. What does this calculator measure?
This calculator measures the **gross profit** specifically from the sale of fuel. It's the revenue from fuel sales minus the direct cost of purchasing that fuel.
2. What is the formula used?
The formula is: Gross Profit = (Selling Price per Unit - Cost Price per Unit) × Total Quantity Sold.
3. What is "per Unit"?
"Per Unit" refers to the standard measurement volume used, typically gallons in some countries and liters in others. Ensure you use the same unit for quantity, selling price, and cost price.
4. Does this calculate my total business profit?
No. This calculates only the profit from selling fuel itself (gross profit). It does not account for your operating costs (like wages, rent, utilities) or revenue/profit from other parts of your business (convenience store, car wash, etc.). To get your net profit, you need to subtract all operating expenses from your total gross revenue (fuel + other sales).
5. Can the result be negative?
Yes. If the selling price per unit is less than the cost price per unit, the calculator will show a negative profit, which represents a loss from fuel sales.
6. What are typical gas station fuel margins?
Fuel margins (selling price minus cost price) can vary significantly based on location, competition, fuel type, and market conditions. They are often relatively thin compared to margins on convenience store items.
7. Why are gas stations profitable if fuel margins are low?
Gas stations often rely heavily on the volume of fuel sold and, more importantly, the higher-margin sales from their convenience store and other services (car wash, food, etc.) to cover operating costs and generate overall net profit.
8. What units should I use for input?
Use consistent units. If your quantity is in gallons, your prices should be per gallon. If your quantity is in liters, your prices should be per liter.
9. Can I use this for different fuel types (gas, diesel, etc.)?
Yes, the calculator works for any type of fuel, as long as you have the total quantity sold for that specific type and its corresponding selling and cost prices per unit.
10. How can I increase my fuel profit?
Basic ways include increasing the volume of fuel sold, increasing the per-unit margin (raising selling price or lowering cost price), or a combination of both. However, market competition and supply costs heavily influence these factors.
