Business Profitability Calculator

Business Profitability Calculator calculator can be used to calculate the profit margin percentage of a business based on total revenue and total expenses.

Input Parameters

Calculation Results

Calculation Formula

Profit Margin (%) = [(Total Revenue - Total Expenses) / Total Revenue] * 100

Where:
Total Revenue - The total income generated from business activities.
Total Expenses - The total costs incurred in generating revenue.

Result

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Profit Margin Percentage

Business Profitability Calculator Calculator Usage Guide

Learn how to use the Business Profitability Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the total revenue generated by your business in the "Total Revenue" field.
  2. Enter the total expenses incurred by your business in the "Total Expenses" field.
  3. Click the "Calculate" button to compute the profit margin percentage.
  4. The result will be displayed in the "Result" section.

Understanding the Result

The profit margin percentage indicates how much of each dollar of revenue translates into profit. A higher percentage is generally more favorable, indicating better profitability.

Example

If your total revenue is $100,000 and your total expenses are $70,000, the profit margin would be calculated as follows:

Profit Margin = [(100,000 - 70,000) / 100,000] * 100 = 30%

This means that for every dollar earned, 30 cents are profit.