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Note: This profit margin calculator helps you measure your business profitability by calculating profit margin percentage, markup, and break-even analysis.
Profit Margin Formulas
Profit Margin = (Revenue - Cost) / Revenue × 100%
Markup = (Revenue - Cost) / Cost × 100%
Markup = (Revenue - Cost) / Cost × 100%
Where Profit Margin shows profitability as percentage of revenue, and Markup shows profitability as percentage of cost.
Profit Margin Analysis Results
0%
Profit Margin
Total Revenue
₹0
Total Cost
₹0
Net Profit
₹0
Markup
0%
Profit Margin Percentage
0%
Markup Percentage
0%
Profit per Unit
₹0
Cost per Unit
₹0
Revenue per Unit
₹0
Equivalent in USD
$0
Break-even Analysis
Break-even Revenue
₹0
Current Revenue vs Break-even
0%
Safety Margin
₹0
Industry Comparison
Your Profit Margin
0%
Industry Average
0%
Performance vs Industry
0%
Business Recommendations
Based on your profit margin analysis, here are recommendations to improve your business profitability.
Understanding Profit Margin
What is Profit Margin?
Profit margin is a financial metric that indicates the percentage of revenue that exceeds the cost of goods sold. It shows how efficiently a company generates profit from its revenue.
Key Formulas
Profit Margin: (Revenue - Cost) / Revenue × 100%
Markup: (Revenue - Cost) / Cost × 100%
Break-even: Fixed Costs / (1 - Variable Cost Ratio)
Profit Margin Standards
• Excellent: 20%+
• Good: 10-20%
• Average: 5-10%
• Poor: Below 5%
• Varies by industry and business model