On this page
What Is Profit Margin?
Formula
Profit margin measures how much of every dollar in revenue becomes profit after covering costs.
A higher margin means more of each sale goes to profit rather than covering expenses.
Common use cases:
- Evaluating business profitability
- Comparing product lines
- Setting pricing targets
Frequently Asked Questions
Maria Gonzalez
Registered Dietitian, RD, MPH
Maria is a Registered Dietitian with a Master's in Public Health. She focuses on evidence-based nutrition assessment tools including BMI, calorie calculations, and body composition analysis.
Was this calculator helpful?
People Also Use
Compound Interest
Calculate compound interest with monthly contributions using our free calculator. See how your investments grow over time with detailed projections.
Mortgage Payment
Calculate your monthly mortgage payment with our free calculator. See total interest costs and payment breakdowns for any loan amount and interest rate.
Tip Calculator
Calculate tips and split bills easily with our free tip calculator. Adjust tip percentage and number of people for accurate per-person totals.
Discount Calculator
Calculate sale prices and savings with our free discount calculator. Enter the original price and discount percentage to see your final cost instantly.
Simple Interest
Calculate simple interest on a principal amount over time with our free online calculator.
Mortgage
Calculate your monthly mortgage payment, total interest, and loan costs with our free mortgage calculator.
Amortization
Calculate your loan amortization schedule with monthly payment breakdowns using our free calculator.
Loan Calculator
Calculate monthly loan payments, total interest, and total cost for any loan with our free calculator.