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# Pretax Profit Margin Calculator

Pretax profit margin is the financial accounting measure used in detecting the profitability of the company before the tax deductions. A company that has higher pre tax profit margin are likely more profitable. If you are looking for the answer to your question of 'How to calculate pretax profit margins?' then here is the online pretax profit margin calculator to calculate the profit margin for pretax based on the pretax profit and net sales/revenue.

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Pretax profit margin is the financial accounting measure used in detecting the profitability of the company before the tax deductions. A company that has higher pre tax profit margin are likely more profitable. If you are looking for the answer to your question of 'How to calculate pretax profit margins?' then here is the online pretax profit margin calculator to calculate the profit margin for pretax based on the pretax profit and net sales/revenue.

#### Formula:

Margin = Pretax Profit / Net Sales (Revenue)

### Example:

Calculate the pretax profit margin of a cotton manufacturing company which has generated a pretax profit of Rs. 500000 and net revenue of Rs. 450000.

#### Solution:

Margin = 500000 / 450000
= 1.1111 %