Profit Margin Calculator
Calculate gross, operating, and net profit margins for your business. See what percentage of each dollar is profit vs cost.
Quick Answer
This profit margin calculator computes gross, operating, and net profit margins from your revenue and costs. Benchmark your margins against industry standards and identify improvement opportunities.
How to Use This Calculator
Select the margin type to calculate: gross margin (revenue minus COGS), operating margin (revenue minus operating expenses), or net profit margin (revenue minus all expenses). Enter your total revenue and the relevant expense amount. This profit margin calculator instantly shows your margin percentage, dollar profit, and a visual profit vs costs breakdown for your business.
How Profit Margins and Net Profit Margin Work
Profit margin measures how much of each dollar in revenue your business keeps as profit. Gross margin shows profitability after direct production costs. Operating margin adds indirect costs like rent and marketing. Net profit margin accounts for all expenses including taxes and interest. Use this margin calculator to see how improving pricing or controlling costs directly impacts your bottom line. Healthy margins vary by industry — software often achieves 80%+ gross margins while retail operates on 2-3% net.
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