Profit Margin Calculator

Profit Margin Calculator

Menga a revenue me a cost el mo profit, margin me a cost ratio melemalt.

UNDERSTAND A ANSWER

Aika ng calculated el ua ngerang?

A profit ng amount el remaining er a uriul er a subtracting a cost el included er a estimate er kau. A margin ng express a profit el share er a revenue.

Profit margin formulaProfit margin = (revenue − cost) ÷ revenue × 100

A practical example

A revenue ng $125,000 me a cost ng $80,000, e a profit ng $45,000 me a profit margin ng 36%.

Assumptions, interpretation me a common mistake

Calculation assumptions

  • A revenue me a cost ng cover a ta el reporting period.
  • A cost ng include a expenses el relevant er a margin el mo measured.
  • A return, discount me a tax ng treated consistently er a revenue.

El ua ngerang el interpret a result

  • A positive margin ng omes er a revenue el klou er a cost el mle songer.
  • A cost ratio me a profit margin ng 100% el taem a profit ng positive me a input ng consistent.
  • Compare a margin er a similar product me a accounting definition.

Common mistakes el mo avoid

  • A confusing margin me a markup.
  • A mixing a gross revenue me a net cost el mle er a different period.
  • A leaving fulfillment, payment òf overhead cost el chelechad er a net-margin calculation.