Profit Margin Calculator
About Profit Margin Calculator
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 : Use Profit Margin Calculator from the Business category.
- Check the inputs : Review the required values and any optional settings.
- Read the formula : Use the formula and notes below to understand how the result is produced.
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.
Inputs
- Mode
- Revenue
- Cost
- Target selling price
- Target margin
Outputs
- Revenue
- Cost
- Profit
- Margin
- Cost ratio
Formula
Profit = revenue - cost. Margin = profit / revenue.