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Profit Margin Calculator

LAST UPDATE: September 1st, 2018

Calculator

What is Profit Margin?

Profit margin is the net income of the firm in relation to the sales.

Formula

Profit Margin = (Net Income / Net Sales) x 100%

Example

A company has net income of $2,100 and net sales of $14,000.

Profit Margin = ($2,100 / $14,000) x 100% = 0.15 x 100% = 15.00%

Therefore, this company’s profit margin is 15.00%.

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