Business tool

Profit Margin Calculator

Find profit margin by comparing profit against total revenue.

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How To Use Profit Margin Calculator

Quick notes to help you understand the result before you act on it.

Overview

Use this profit margin calculator to check how much of your revenue remains as profit.

Enter profit as the value and revenue as the total to get the margin percentage.

Profit Margin Formula

  • Profit margin = profit / revenue x 100.
  • A higher margin usually means more revenue is retained after costs.

Practical Tips

  • Use net profit for net margin and gross profit for gross margin.
  • Compare margins within the same industry for better context.

FAQ

Common questions about this tool.

How do I calculate profit margin?

Divide profit by revenue and multiply by 100.

Is profit margin the same as markup?

No. Margin compares profit with selling price or revenue, while markup compares profit with cost.