How to calculate profit margin: Calculator, formulas, and examples
Profitability is one of the key metrics that define the success of a company. Many small-business owners need to keep a sharp eye on their revenue and find creative ways to keep generating profit year after year. As your business grows, a reliable profit margin calculator can give you the valuable data you need to make informed financial decisions—so should your profit margins.
Our guide breaks down the details of how profit margins work, provides formulas for different types of margins, and gives real-world examples of various businesses calculating profit margins. Plus, we have a free gross profit margin calculator to help you quickly crunch your numbers.
Our profit margin calculator can help you determine the selling price for your products or services so you can maximize your profit margin.