Profit Margin Calculator

How to calculate profit margin

Profit margin measures profit as a share of revenue. Revenue of 1,000 with costs of 650 gives profit of 350 and a margin of 35%.

Formula

(revenue − costs) ÷ revenue × 100

Worked example

Revenue

1,000

Costs

650

Applying the formula to these values gives 35 %.

What should I check?

Margin uses revenue as its denominator; markup uses cost. Include all relevant costs if you want a net margin.

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