Free Bakery Profit Calculator

Calculate your bakery's profit margins and compare to industry benchmarks. Know if your business is profitable.

Is Your Bakery Actually Making Money?

Let's find out! This calculator shows you if you're profitable and how you compare to other bakeries. Just enter your sales and costs - we'll show you the real numbers and what they mean.

✓ See profit margins✓ Industry benchmarks✓ Break-even analysis
Try an Example Business

See how different bakery models perform. Load an example to understand profit margins and benchmarks

💵How Much Did You Make in Sales?

Your total income from selling baked goods

📊 For a week, month, or year - whatever period you want to check

Cost of Goods Sold (COGS)

Direct costs to make your products

Flour, sugar, butter, eggs, etc.

Boxes, bags, labels, ribbons, etc.

Total COGS: $0.00 (0.0% of revenue)

Operating Expenses

Costs to run your business

Your time + any employees

Rent, utilities, equipment, insurance, etc.

Ads, social media, website, etc.

Licenses, fees, software, etc.

Total Operating Expenses: $0.00

Profit Summary

Total Revenue:

$0.00

Total Costs:

$0.00

Net Profit:

$0.00

Profit Margins

Gross Profit Margin

0.0%

Industry: 60-80% (Ideal: 70%+)

Net Profit Margin

0.0%

Industry: 5-25% (Ideal: 15%+)

COGS %

0.0%

Industry: 20-40% (Ideal: 30% or less)

Track Profits Over Time

Monitor your profit margins monthly, identify trends, and grow your bakery business profitably.

How to Improve Your Profit Margins

Reduce COGS

Your ingredient and packaging costs should be 20-40% of revenue. Ways to reduce:

  • Buy ingredients in bulk
  • Negotiate with suppliers
  • Reduce waste and improve yield
  • Use seasonal ingredients
Increase Prices

Many home bakers underprice. A 10-20% price increase can double your profit:

  • Price based on value, not just cost
  • Charge for your skill and time
  • Test higher prices with new customers
  • Add premium options
Control Operating Expenses

Operating expenses should be 30-50% of revenue. Ways to optimize:

  • Track all expenses carefully
  • Eliminate unnecessary subscriptions
  • Improve efficiency to reduce labor
  • Negotiate rent or work from home
Increase Revenue

More sales = more profit. Strategies to grow revenue:

  • Focus on high-margin products
  • Upsell and cross-sell
  • Offer catering or wholesale
  • Build repeat customer base

Frequently Asked Questions

What is a good profit margin for a bakery?

A healthy bakery should aim for 60-70% gross profit margin and 10-20% net profit margin. Home bakeries often have higher margins (15-25% net) due to lower overhead costs.

What's the difference between gross and net profit?

Gross profit is revenue minus COGS (ingredients + packaging). Net profit is revenue minus ALL costs including labor, overhead, and marketing. Net profit is what you actually take home.

How much should I pay myself?

Include your labor in operating expenses. Pay yourself a fair hourly rate ($20-40/hr depending on skill level). After all expenses, your net profit is additional income beyond your labor.

My profit margin is low. What should I do?

First, ensure you're tracking ALL costs accurately. Then: (1) Increase prices 10-20%, (2) Reduce ingredient waste, (3) Focus on high-margin products, (4) Cut unnecessary expenses. Even small changes can significantly improve profitability.