how to calculate profit margin
How to Calculate Profit Margin for Business
Profit margin shows how much profit remains from each unit of sales revenue.
Bangladesh-focused guide with practical calculation workflow.
Calculator in This Article
Profit Margin Calculator
Calculate profit margin percentage from cost and revenue. Find gross profit margin, net profit margin, and markup percentage.
Gross Profit Calculator
Calculate gross profit and gross profit margin from revenue and cost of goods sold (COGS).
Net Profit Calculator
Calculate net profit after all expenses. Find net profit margin from revenue, COGS, and operating expenses.
Step-by-Step Explanation
- Find revenue and cost
- Calculate gross or net profit
- Divide profit by revenue
Formula Used
- Profit margin % = (profit / revenue) × 100
Example Calculation
- If revenue is BDT 200,000 and profit is BDT 50,000, margin is 25%.
Common Mistakes
- Using markup formula instead of margin
- Ignoring indirect costs for net margin
FAQ
- What is healthy margin? Varies by industry.
- Should I use gross or net margin? Use both for better decision-making.
Related Calculators
- Open: /calculators/profit-margin-calculator
- Open: /calculators/gross-profit-calculator
- Open: /calculators/net-profit-calculator