Profit Margin Calculator
Calculate profit, margin, cost ratio, or maximum cost for a target margin.
Revenue
$10,000.00
Cost
$6,500.00
Profit
$3,500.00
Margin
35%
Cost ratio
65%
Formula
Profit = revenue - cost. Margin = profit / revenue.
The profit margin calculator compares revenue and cost to estimate gross profit and margin.
How to Use
The profit margin calculator compares revenue and cost to estimate gross profit and margin. Fill in Revenue, Cost, Mode, Target selling price, and Target margin, then review the calculated Profit, Margin, Cost ratio, Revenue, Cost, and Maximum cost.
- Open the calculator : Start with Profit Margin Calculator.
- Enter values : Fill in the required inputs and any optional settings.
- Review the result : Read the output and use the about page for more detail if needed.
Common Questions
What formula does the Profit Margin Calculator use?
Profit = revenue - cost. Margin = profit / revenue.
What is the difference between gross margin and net margin?
Gross profit margin only deducts the Cost of Goods Sold (COGS) from your total revenue, showing the profitability of your actual products. Net profit margin deducts all operating expenses, taxes, and interest, revealing the true bottom-line profitability of the entire business.