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Franchise · Margin

Profit Margin

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Use profit margin to see how much of every dollar of sales you actually keep after all costs, a fast health check for a shop or franchise.

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Interactive workbench

Tea shop month

Net Profit / Revenue * 100

$6,000 of net profit on $40,000 of sales is a 15% profit margin.

Check your inputs before you rely on the result — calculations are informational only and depend entirely on the numbers you enter. See our Terms.

Variables and units

  • Net Profit

    Profit after all costs for the period.

    currency

  • Revenue

    Total sales revenue for the period.

    currency

Common mistakes

  • Using gross profit instead of net profit.
  • Leaving owner pay out of costs.

Step-by-step example

Tea shop month

$6,000 of net profit on $40,000 of sales is a 15% profit margin.