Business

Profit Margin Calculator

Calculate net profit, profit margin and revenue retained after expenses.

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Profit Margin Calculator

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Business Profitability & Pricing

Markup, margin, break-even and profit calculations for pricing and operating decisions.

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How to use this profit margin calculator

Enter the requested values above and select Calculate. The result updates immediately on the page, so you can change one value and compare different scenarios without leaving the calculator.

Formula and method

Profit = revenue − expenses. Profit margin = profit ÷ revenue × 100.

Example

Revenue of $100,000 and expenses of $75,000 produces $25,000 profit and a 25% margin.

What this calculator is useful for

Calculate net profit, profit margin and revenue retained after expenses. It is designed for quick estimates and everyday problem solving. When a calculation affects a contract, tax filing, medical decision or other high-stakes situation, verify the result with the appropriate professional or authoritative source.

Margin uses revenue as its denominator

Revenue of $85,000 minus $67,000 in expenses is $18,000 profit. Profit margin = 18,000 ÷ 85,000 = 21.18%. Compare this with markup, which divides profit by cost instead.

What to check: Classify revenue and expenses consistently by period. Whether you include taxes, interest, owner compensation, and noncash costs changes whether this resembles gross, operating, or net margin.

Compare with the Markup calculator when that better matches the question you are trying to answer.

Frequently asked questions

What does the Profit Margin Calculator calculate?

Calculate net profit, profit margin and revenue retained after expenses.

How does the calculation work?

Profit = revenue − expenses. Profit margin = profit ÷ revenue × 100.

Is this calculator free?

Yes. ERICH Calculators is free to use and no account is required.

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Method, assumptions & corrections

See how formulas, sources and limitations are handled across ERICH Calculators.