How to use it
- Enter total revenue for the same period or transaction.
- Enter the corresponding total cost.
- Calculate to compare profit, margin percentage and cost ratio.
Profit Margin Calculator
Compare revenue and cost to estimate profit and profit margin.
About the Profit Margin Calculator
The profit margin calculator shows how much revenue remains after the entered cost and expresses that amount as a percentage of revenue.
Formula
Profit equals revenue minus cost. Profit margin equals profit divided by revenue, multiplied by 100. Cost ratio equals cost divided by revenue, multiplied by 100.
Example
Revenue of 10,000 and cost of 6,500 produce profit of 3,500, a 35% profit margin and a 65% cost ratio.
Notes
Use revenue and cost from a consistent scope. The result is a formula-based estimate and does not include unentered taxes, overhead or other accounting adjustments.