Summary
Calculate profit and profit margin from revenue and total cost.
Calculation details
Margin compares profit with revenue, so revenue must be greater than zero.
Formula
Profit = revenue - total cost; margin = profit / revenue.
Worked example
Worked example
$25,000 profit on $100,000 revenue is a 25% margin.
How it works
Enter revenue and total cost from the same period and currency. Margin is profit ÷ revenue, so revenue must be positive.
Frequently asked questions
What does the Profit Margin Calculator calculate?
Margin compares profit with revenue, so revenue must be greater than zero.
Should I use this result for financial reporting?
Use it as an estimate and verify reporting, accounting, tax, and legal treatment with qualified professionals.