## Profit Margin Calculator

## What is the profit margin?

Profit margin is a financial metric that calculates the percentage of profit earned by a company based on its total revenue.

It is a useful tool for businesses to figure out how profitable they are and compare their performance to industry standards.

## What is a profit margin calculator?

A profit margin calculator is a tool that assists businesses in determining their profit margin. It is a straightforward and simple tool that can be used by businesses of all sizes.

## How does a profit margin calculator work?

A profit margin calculator works by taking a company’s total revenue and deducting its total cost of goods sold (COGS) and all other expenses.

The profit margin percentage is then found by dividing the number by the total sales and multiplying by 100.

## Benefits of using our profit margin calculator

The following are the benefits of using our profit margin calculator:

- Simple and quick to use
- Accurate results
- Gives a clear picture of the business’s profitability.
- Helps businesses find ways to cut costs.

## Profit margin calculator Formula

The formula for calculating the profit margin is as follows:

Profit Margin = (Net Profit / Total Revenue) x 100

## Example

A company has a total revenue of $20,000 and a total cost of goods sold and expenses of $12,000.

Using the formula, the profit margin would be:

Profit Margin = ($20,000 – $12,000) / $20,000 x 100 = 40%

## How to use our profit margin calculator

To use our profit margin calculator, follow these simple steps:

- Input your total revenue in the designated field.
- Input your total cost of goods sold and expenses in the designated field.
- Click on the “Calculate” button.
- The calculator will automatically calculate your profit margin percentage and display it on the screen.

To summarize, a profit margin calculator is an important tool for businesses to use in measuring profitability and identifying cost-cutting opportunities.

Our **profit margin calculator** is simple to use, accurate and gives a clear picture of a company’s financial health. It is a useful tool for companies of all sizes.