Calculate your website profitability by comparing monthly revenue against costs. Determine monthly profit, annual profit, and profit margin percentage.
Website profitability measures the difference between your website revenue and costs. Revenue includes ad income, product sales, affiliate commissions, and subscriptions. Costs include hosting, domain, tools, content creation, marketing, and maintenance. Tracking profit margin helps evaluate business health and guide investment decisions.
Monthly Profit = Monthly Revenue - Monthly Costs | Profit Margin = (Monthly Profit / Monthly Revenue) × 100Profit is simply revenue minus costs. Profit margin expresses profit as a percentage of revenue, indicating how much of each dollar earned is actual profit. A 50% margin means 50 cents of every dollar is profit. Higher margins indicate more efficient operations.
| Input | Output |
|---|---|
| Revenue: $5,000/month, Costs: $2,000/month | Monthly Profit: $3,000 | Annual: $36,000 | Margin: 60.0% |
| Revenue: $10,000/month, Costs: $8,000/month | Monthly Profit: $2,000 | Annual: $24,000 | Margin: 20.0% |
| Revenue: $3,000/month, Costs: $3,500/month | Monthly Profit: -$500 | Annual: -$6,000 | Margin: -16.7% — Loss! |