Costs exceed revenue in your inputs—check period alignment and one-off items.

Usually excluded from clinic operating profit unless your accountant includes them; be explicit.

Published by Clinic Admin Tools UK · Independent practice-admin content · Not clinical advice

Clinic profit margin calculator

Compute net profit margin from revenue and all recognised costs for a period.

Introduction

Profit margin here is (revenue − costs) ÷ revenue. Use figures consistent with how you define profit—operating, pre-tax, or after tax.

Do not confuse cash flow with profit; depreciation and loan principal illustrate the gap.

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Revenue

(£)

Total costs

(£)

Profit margin —

Profit margin is (revenue − costs) ÷ revenue on whatever profit definition you choose—operating, pre-tax, or after tax.

Do not confuse with cash margin; depreciation and working capital sit in between.

Negative margin?: Costs exceed revenue in your inputs—check period alignment and one-off items.
Owner drawings?: Usually excluded from clinic operating profit unless your accountant includes them; be explicit.

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