How to Calculate Your Profit Margin Per Class

Many instructors confuse "revenue" with "profit." You see $200 in student fees and think you had a great night. But after rent, travel, and taxes, did you actually make less than minimum wage?

The Formula

(Revenue - Variable Costs) / Revenue = Margin

Step 1: Calculate Revenue

Let's say you had 10 students at $20 each.
Revenue = $200

Step 2: Calculate Variable Costs

This is where most teachers slip up. Your costs include:

• Studio Rent: $50/hour
• Travel Time: (Your hourly rate x hours commuting)
• Platform Fees: (Credit card processing, booking software)

Total Costs (example): $50 (Rent) + $6 (Processing) = $56

Step 3: The Truth

Profit = $200 - $56 = $144.
Margin = $144 / $200 = 72%

A 72% margin is excellent. But what if only 4 students showed up?
Revenue: $80. Costs: $56. Profit: $24.
That is a lot of work for $24.

Fixing the Equation

If your margins are under 50%, you have two levers: Raise Prices or Lower Rent. Studio Planner helps with the latter by offering transparent, competitive hourly rates so you can shop for the best deal.