Online Calculators > Financial Calculators > Profit Margin Calculator

Profit Margin Calculator

Profit Margin Calculator - calculate the profit margin which is a financial ratio that measures the amount of net income generated by each sales dollar in a business. Profit margin formula is shown below on how to calculate profit margin ratio for your business.

Profit Margin Ratio Calculator

Net Income:
Net Sales:
Profit Margin:

Profit Margin Formula

Following is the profit margin formula on how to calculate profit margin ratio.
Profit Margin = Net Income / Net Sales

For example, a business is generating $400,000 in net sales with $100,000 in net income. Here's how to calculate the profit margin ratio.
Profit Margin Ratio = 100000/400000 = 0.25 or 25%

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