Profit Margin Calculator
Calculate gross, net, and operating profit margins with detailed analysis
Profit AnalysisCalculator Inputs
Options
Results & Analysis
Enter values and click calculate to see results
How It Works
Understanding Profit Margins
Profit margin is a key financial metric that measures how much profit your business makes for every dollar of revenue. Our calculator provides three essential margin calculations:
1. Gross Profit Margin
Formula: (Revenue - Cost of Goods Sold) / Revenue × 100
This measures the profitability of your core business operations before accounting for operating expenses.
2. Operating Profit Margin
Formula: (Revenue - COGS - Operating Expenses) / Revenue × 100
This shows profitability after accounting for day-to-day operating costs but before interest and taxes.
3. Net Profit Margin
Formula: (Revenue - All Expenses) / Revenue × 100
This is your bottom-line profitability after all expenses, taxes, and interest.
Industry Benchmarks
- Retail: 2-6% net margin
- Software: 15-25% net margin
- Manufacturing: 5-10% net margin
- Services: 10-20% net margin