Profit Margin Calculator
Calculate profit after direct costs and operating expenses, then see the margin as a percentage of revenue. Label the cost layer before comparing businesses.
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Profit after expenses
80,000%
Revenue minus entered expenses
- Margin percentage
- 80%
Planning context
$20,000
Use official rules and your documents to confirm
Educational planning math only. Rules, eligibility, tax treatment, benefit formulas, and lender or agency calculations can differ from this simplified estimate.
Read gross vs. net profit margin and pair margin with a cash-flow forecast before making a business decision.
Frequently asked questions
- What is gross margin?
- Gross margin is revenue minus direct cost of goods, divided by revenue.
- What is net margin?
- Net margin includes additional operating and other expenses, and may include taxes and interest depending on the definition used.
- Can a high margin still lose cash?
- Yes. Timing of collections, inventory, debt payments, taxes, and capital spending can make cash flow differ from accounting profit.
- Should owner pay be an expense?
- Use a consistent accounting convention and include a realistic replacement cost when comparing operating performance.
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The ToolGrym editorial team builds and maintains every calculator on this site. Each tool’s formulas are implemented as tested code and verified against authoritative sources such as the CFPB, Federal Reserve, IRS, and BLS.