Profit Margin Calculator

Find gross, operating and net profit margin from revenue and costs.

Revenue	$100,000
Cost of goods sold	$55,000
Operating expenses	$25,000
Interest and taxes	$5,000

Revenue

Cost of goods sold

Operating expenses

Interest and taxes

Net profit margin

15%

Gross margin 45%, operating margin 20%, net margin 15%.

Gross profit: $45,000
Operating profit: $20,000
Net profit: $15,000

Margins

Gross45%
Operating20%
Net15%

About the Profit Margin Calculator

Enter revenue, cost of goods sold, operating expenses, and interest and taxes. The calculator gives gross, operating and net profit and each as a margin of revenue.

Gross margin shows what's left after the direct cost of what you sell; operating margin also subtracts overheads; net margin is what remains after interest and taxes. Margins are a share of revenue, unlike markup, which is a share of cost.

The formula

Margin = profit ÷ revenue × 100

Worked example

Revenue 100,000; COGS 55,000; operating expenses 25,000; interest and taxes 5,000

Gross profit 45,000: 45% margin
Operating profit 20,000: 20%
Net profit 15,000: 15%

Questions people ask

What is a good margin?

It depends on the industry: grocery retail nets 1–3%, software often 20%+.

Margin vs markup?

A 50% markup is a 33.3% margin; see the markup calculator.

Why watch gross margin?

It shows whether pricing covers direct costs before overheads; falling gross margin is an early warning.