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 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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