Profit Margin Calculator

Quickly determine how much you’ll really earn on every sale with our calculator. Enter your costs, selling price, and fees to instantly calculate your gross profit and margin.

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FAQs

How do you calculate profit margin?

Profit margin is calculated by dividing your profit by your total revenue and then multiplying the result by 100 to get a percentage. Profit is determined by subtracting costs, fees, and expenses from your selling price. This percentage helps you understand how much of your sales revenue is actual profit.

What is a 45% profit margin?

A 45% profit margin means that nearly half of your sales revenue is profit. For every $100 in sales, you would earn $45 after subtracting costs and expenses. This is considered a strong margin in most industries, indicating efficient pricing, healthy demand, and good cost management in your business operations.

What is a 30% margin on $100?

A 30% margin on $100 means that after covering all costs, you keep $30 as profit. In this case, your cost would be $70, and when you sell for $100, the $30 difference is your profit. The margin represents the percentage of sales that remains after expenses.