Profit Margin Calculator
Calculate profit margin from revenue and costs, and see what is left after everything is paid.
Profit margin
What it measures
Profit margin is what remains of revenue after costs, as a percentage. Fed with COGS only it gives gross margin; fed with all costs it gives net.
Why it matters
Margin decides what every other number is allowed to be: target CPA, break even ROAS and hiring plans all inherit from it.
A worked example
80,000 revenue against 62,000 of cost is a 22.5 percent margin: 18,000 of profit.
How to read and improve it
Price is the strongest margin lever and the least tested. Most businesses raise prices less often than their costs rise.
Frequently asked questions
Gross or net margin?
Gross judges the product, net judges the whole business. Know which one a conversation is about.
What margin is healthy?
Entirely sector dependent. Software runs high gross margins; the discipline is keeping net positive while growing.
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