Operating margin is calculated by dividing operating income by net sales or revenue. The result is often expressed as a percentage. Operating income is a measurement of profit that includes all expenses except interest a... More »

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To calculate operating profit, subtract operating expenses from gross profit. Also referred to as operating income, operating profit represents the total profits, before taxes, that a business generates from its operatio... More »

Total profit, also called gross profit, is calculated by taking the total received from sales and subtracting the cost of the goods sold. It does not include expenditures, such as insurance and taxes. Gross profit is use... More »

Work out a profit margin by dividing a measure of the company's profitability by the revenue, or sales, figure. There are a few different calculations for profit margins, depending on what data is required More »

Optimal sales price is calculated as the necessary revenue to achieve a desired profit margin divided by the quantity of product units forecast to sell, explains small-business writer Gregory Hamel. A profit margin is th... More »

Net income plus operating expenses is equal to gross profit. The gross profit is what a company earns after it sells a product and pays all other costs associated with the production and sale of it. More »

To calculate profit and loss, evaluate revenue, cost of goods sold and the expenses incurred, then subtract cost of goods sold and expenses from sales. A positive result denoted profit, while a negative result indicates ... More »