How To Use A Margin Calculator

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Use this margin calculator to determine your profit based on revenue, cost, and expenses.

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Intermediate Results

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Metric	Value
Gross Profit	—
Operating Profit	—
Profit Margin	—

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Chart

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Explanation of Formulas

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Margin calculation is essential for businesses to understand their profitability. Here are the formulas used:

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• Gross Profit = Revenue – Cost of Goods Sold

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• Operating Profit = Gross Profit – Operating Expenses

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• Profit Margin = (Operating Profit / Revenue) × 100

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Example: If Revenue = $10,000, COGS = $4,000, and Expenses = $2,000:
\n Gross Profit = $10,000 – $4,000 = $6,000
\n Operating Profit = $6,000 – $2,000 = $4,000
\n Profit Margin = ($4,000 / $10,000) × 100 = 40%

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