Profit Margin Calculator



Useful

Why it's useful to use

Using a profit margin calculator helps eCommerce entrepreneurs understand how much profit they make after covering costs. Knowing this metric allows you to make better pricing decisions, optimize spending, and set realistic financial goals. It’s a quick way to analyze the health of your business and make informed decisions that can drive long-term success.
Formula

How the tool works

The formula for calculating profit margin is simple. It subtracts the total costs from the total sales to find the profit. Then, it divides the profit by total sales and multiplies by 100 to get the percentage. This tells you what portion of your sales is profit, which is important for evaluating the efficiency and profitability of your business.

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