Profit Margin Calculator
Gross, operating and net margin from revenue.
Enter your values
Results update instantly as you type — no submit needed.
Results
- Gross profit
- $110000 (44%)
- Operating profit
- $50000 (20%)
- Net profit
- $39500 (15.8%)
- Cost ratio
- 80%
Quick answer
Gross margin is (revenue − COGS) ÷ revenue; net margin subtracts operating costs and tax as well.
Margin = profit ÷ revenue × 100
How to use the Profit Margin Calculator
- 1Enter total revenue for the period.
- 2Enter cost of goods sold and operating expenses.
- 3Add your tax rate for net margin.
Frequently asked questions
What is a healthy net margin?
It varies hugely: grocery retail runs 1–3%, services 10–20% and software often 20–40%.
Why track gross margin separately?
Gross margin shows whether the product itself is profitable, before overheads — it's the first number investors check.