Profit Margin Calculator

Geekflare Profit Margin Calculator Features

• Intuitive Interface: Easily calculate profit margins with a few simple inputs.
• Essential Profit Margin Calculation: Quickly determine your profit margin percentage and total profit.
• Flexible Input Options: Enter your
  • Cost (Buying Price): The cost of producing or purchasing your product.
  • Quantity (Optional): The number of units sold (useful for bulk sales).
  • Tax Percentage (Optional): The applicable tax rate in your region.
  • Revenue (Selling Price): The price at which you sell your product or service.
• Detailed Results: Receive a comprehensive overview of your profit margins, including
  • Profit Margin Percentage: The percentage of profit you make on each sale.
  • Total Profit (Amount): The actual amount of profit you earned.
  • Profit Per Unit (if applicable): The profit made on each individual unit sold.
  • Before-Tax and After-Tax Calculations: Clearly see the impact of taxes on your profit margins.
• Visualized Results: See your profit margins at a glance with clear charts and graphs.
• Ideal for Various Businesses: Use the calculator for products, services, or any scenario where you need to determine profitability.

What is Profit Percentage?

The amount of profit that a business incurs in terms of percentage is called profit percentage. It is the calculation of financial benefits in percentage after the business has paid all of its expenses. It is one of the most significant ways to determine the financial health of a business. It can help you make better decisions and resolve future financial risks effectively. Besides efficient financial planning, a good profit percentage can help attract potential investors to the business.

Profit Margin Metrics

There are three main metrics that are used as input to calculate the profit percentage.

1. Cost price (CP): It is the price of the purchase of an item. In the case of production, it may include all the expenses such as raw materials, taxes, administrative expenses, and all.
2. Selling price (SP): It is the price of the sale of an item.
3. Profit: Profit is the condition when the selling price of an item is more than the cost price of the same.

Profit = Selling Price (SP) – Cost Price (CP) 

Formula to Calculate Profit Margin

To calculate the profit percentage, you will need the below-mentioned formula.

Profit Percentage (Markup) = Net Profit (SP – CP)/Cost Price (CP) X 100

Profit Percentage (Margin) = Net Profit (SP – CP)/Selling Price (SP) X 100

Let’s understand the application of these formulae with the following simple example.

A vendor purchased a book for $100 and sold it for $125. Now we need to calculate the profit percentage (markup as well as margin).

Profit % (Markup) = $25(SP – CP)/$100(CP) X 100 which is equal to 25%

Profit % (Margin) = $25(SP – CP)/$125(SP) X 100 which is equal to 20%

Is there any other Profit Margin Calculator beside Geekflare Tools?

Yes, Shopify, and Everyday Calculation profit margin calculator you can try.