Profit Margin Calculator
Calculate gross profit, net profit and profit margin from revenue and total costs. Free, instant and mobile-friendly.
Enter your numbers
Formula
Profit margin = (Revenue − Total costs) ÷ Revenue × 100
How to use this result
Use the result to compare scenarios, set targets and identify the number that most affects your decision. Recalculate when prices, costs, customer volume or campaign performance change.
This calculator provides an estimate based on your inputs and is not accounting, tax, legal or investment advice.
Understand your Profit Margin Calculator result
Profit margin shows how much of every euro of revenue remains after the costs entered in the calculator. It is useful for pricing reviews, budgets, product comparisons and monthly performance checks.
Worked example
If revenue is €50,000 and total costs are €32,000, profit is €18,000 and the profit margin is 36%. That means €0.36 remains from each €1 of revenue before any costs you did not include.
How to interpret it
A rising margin can indicate stronger pricing, lower costs or a better sales mix. A falling margin deserves investigation: compare price changes, supplier costs, discounts and operating expenses.
Practical next steps
- Separate fixed and variable costs before comparing periods.
- Review low-margin products and large discounts.
- Recalculate after any supplier or pricing change.
Questions to ask before deciding
Are all relevant costs included? Is the time period consistent? How would the result change if volume, price or cost moved by 10%? Save your assumptions so you can compare the estimate with actual performance later.