Profit Margin Calculator Online
Calculate your gross and net profit margins accurately to analyze business profitability and set optimal pricing strategies. This essential financial tool helps retailers, ecommerce entrepreneurs, and business owners make data-driven decisions to maximize revenue and sustainable growth.
Profit Margin Calculator
Revenue ($):
Cost ($):
Typical Use Cases
Profit margin calculators are essential for businesses to determine the profitability of their products or services. They help in pricing strategies, financial planning, and evaluating business performance.
Retailers use this tool to set competitive yet profitable prices, ecommerce store owners analyze product line profitability, and service businesses determine optimal billing rates. Investors and analysts also rely on profit margin metrics to assess business health and compare performance against industry benchmarks.
Formula
- Revenue: Total income from sales.
- Cost: Total expenses incurred.
- Profit Margin: (Revenue - Cost) / Revenue * 100