Formula and method
Profit = revenue − costs. Profit margin = profit ÷ revenue × 100.
Worked example
Revenue of 10,000 and costs of 7,000 produce profit of 3,000 and a margin of 30%.
Calculate profit or loss and its share of revenue using costs for the same accounting period.
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Profit margin
30.00%
Use costs appropriate to the margin you need: cost of goods for gross margin, or all applicable expenses for net margin.
Profit = revenue − costs.
Margin = profit ÷ revenue × 100.
Profit = revenue − costs. Profit margin = profit ÷ revenue × 100.
Revenue of 10,000 and costs of 7,000 produce profit of 3,000 and a margin of 30%.
That depends on the costs entered. Cost of goods gives gross margin; including other applicable expenses gives a different profit measure. Keep the scope consistent.
Last updated . Results are estimates for informational purposes only.