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Profit Margin Calculator

Calculate your gross and net profit margins. Enter revenue, cost of goods sold, and operating expenses.

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Profit Margin Calculator

Total Revenue
$100,000
$0$1,000,000,000
Cost of Goods Sold
$40,000
$0$1,000,000,000
Operating Expenses
$30,000
$0$1,000,000,000

How the Profit Margin Calculator Works

The Profit Margin Calculator helps calculate your gross and net profit margins. enter revenue, cost of goods sold, and operating expenses.. Simply enter your numbers in the fields above and the calculator updates in real-time.

Understanding the Results

  • Net Profit: Your profit after all costs.
  • Gross Profit Margin: See your calculated gross profit margin.
  • Net Profit Margin: See your calculated net profit margin.
  • Gross Profit: See your calculated gross profit.

When to Use This Calculator

  • Use the Profit Margin Calculator to calculate profit margin calculator.
  • Use the Profit Margin Calculator to calculate gross margin calculator.
  • Use the Profit Margin Calculator to calculate net profit margin.
  • Set prices and rates that ensure your business remains profitable.
  • Evaluate the financial viability of new projects and investments.

Step-by-Step Example

$100k revenue, $40k COGS, $30k expenses

  • revenue: 100000
  • costOfGoods: 40000
  • operatingExpenses: 30000

Frequently Asked Questions

What is a good profit margin?

It varies by industry. Gross margins of 50%+ are common for software and services. Retail typically runs 30-50% gross margins. Net margins of 10-20% are generally considered healthy.

What is the difference between gross and net margin?

Gross margin only considers the direct cost of producing goods (COGS). Net margin includes all operating expenses — rent, salaries, marketing, etc. Net margin is the truer measure of profitability.

How can I improve my profit margin?

Increase prices, reduce COGS (better suppliers, bulk discounts), or cut operating expenses. Even small improvements in margin have a big impact on net profit.

Disclaimer: This calculator provides estimates for educational purposes only. Always consult a qualified financial professional for personalized advice.