finance Verified Precision Tool
Profit Margin Calculator
Calculate gross profit margin percentage and net profit from revenue and costs.
Selected: US Dollar ($)Financial Calculation Solution
Margin = -400.00%
Profit: $-80.00, Markup: -80.00%
Mathematical Formula
Margin % = ((Revenue - Cost) / Revenue) * 100
Overview & Explanation
Profit margin represents the ratio of profit earned relative to total revenue generated.
How It Works
- Subtract cost from revenue to find profit.
- Divide profit by revenue and multiply by 100.
Practical Applications
- Evaluating business unit profitability.
- Financial statement analysis.
Worked Example: $60 cost, $100 revenue
Calculate margin.
1
Profit Amount
100 - 60
= $40
2
Margin Percentage
(40 / 100) * 100
= 40%
Frequently Asked Questions
What is a good profit margin?
A 20% margin is considered healthy in retail, though benchmarks vary significantly by industry.
Related Calculators
finance
Markup Calculator
Calculate retail selling prices, gross profit, and markup percentages from cost.
Use Calculator
finance
ROI Calculator (Return on Investment)
Calculate return on investment percentage, net profit, and investment gains.
Use Calculator
finance
Break Even Calculator
Calculate break even unit volume and revenue to cover fixed and variable costs.
Use Calculator