**Instructions:** You can use this Profit Margin Calculator, by providing the net income and sales in the form below:

## Profit Margin Calculator

More about the *Profit Margin* so you can better use the results provided by this solver. The Profit Margin is the ratio of net income to sales. This ratio is a profitability measure, and it indicates how many dollars in net income a firm has for each $1 in sales. In order to calculate the Profit Margin, we use the following profit calculation formula:

Other measures of profitability that you may be interested in are the return on assets or return on equity.

Also, the net income is used to compute another related measure, which is the price earnings ratio, which measures the ratio of price per share to earnings per share.

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