Profit Margin Calculator

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.

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.

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.