Business
Business Profit Margin Calculator
Turn a profit figure and revenue into a profit margin percentage for easy comparison.
Formula
Profit margin = profit divided by revenue, multiplied by 100. Use gross profit for gross margin or net profit for net margin.
How it works
Enter the profit figure you want to measure and the revenue it came from. The percentage makes it easy to compare months, products or competitors of different sizes. A steady or rising margin usually means costs are under control.
FAQs
What is a good margin?
It depends on the industry. Food and retail often run thin margins, while services can run higher. Compare with similar businesses, not with unrelated ones.
Gross or net margin?
Gross margin uses gross profit and ignores overheads; net margin uses net profit and reflects everything. Both are useful for different questions.
Why did my margin fall while profit rose?
Revenue may have grown faster than profit, often because costs rose. The percentage reveals what the raw profit figure hides.
Estimates only, not financial advice. Check your figures before making a business decision.