Profit Margin Calculator

Calculate gross profit margin, operating margin, and net profit margin to understand your business profitability.

Revenue & Costs

$
$
Direct costs of producing goods
$
Rent, salaries, utilities, etc.
$
Interest, taxes, depreciation

Profit Margins

Gross Profit Margin 0% $0
Operating Margin 0% $0
Net Profit Margin 0% $0

Profit Waterfall

Revenue $0
- COGS -$0
= Gross Profit $0
- Operating Expenses -$0
= Operating Profit $0
- Other Expenses -$0
= Net Profit $0

Industry Benchmarks (Net Margin)

IndustryTypical Range
Retail2-5%
Restaurants3-9%
Technology15-25%
Consulting10-20%
Manufacturing5-15%
Healthcare8-15%

Types of Profit Margins

  • Gross Margin: (Revenue - COGS) ÷ Revenue - Shows production efficiency
  • Operating Margin: Operating Income ÷ Revenue - Shows operational efficiency
  • Net Margin: Net Income ÷ Revenue - Bottom line profitability

Improving Your Margins

  • Increase prices strategically
  • Reduce cost of goods sold
  • Improve operational efficiency
  • Negotiate better supplier terms
  • Eliminate low-margin products/services