About this calculator
Profit = Revenue − Cost. Margin = Profit ÷ Revenue × 100.
Profit is the difference between what you earn (revenue) and what it costs you to earn it (cost). This calculator gives you both the rand profit and the profit margin as a percentage, using the formulas Profit = Revenue − Cost and Margin = (Profit ÷ Revenue) × 100.
If you enter only the cost of goods sold (COGS) — the direct cost of producing what you sold — the result is your gross profit and gross margin. If you enter total expenses including overheads, salaries, marketing and tax, you get net profit and net margin. Both are useful, but they answer different questions: gross margin tells you how efficient your product economics are; net margin tells you how profitable the whole business is.
Profit margin is a quick health check that lets you compare products, time periods or competitors regardless of size. South African retail businesses often run on net margins in the single digits, while service and software businesses can comfortably hit 20% or more. Use this calculator alongside the Break-even Calculator to set realistic pricing.
How to use it
- 1Enter your revenue. Total sales or income for the period.
- 2Enter your cost. COGS for gross profit, or total expenses for net profit.
- 3Read profit and margin. Use the margin to compare across products or periods.