Profit Margin Calculator
Calculate gross, operating and net profit margins from revenue and costs.
Net profit margin
10%
- Gross profit margin
- 40%
- Operating margin
- 15%
- Gross profit
- 40,000.00
- Operating profit
- 15,000.00
- Net profit
- 10,000.00
Show the work
Gross profit
revenue − cost of goods sold
100,000.00 − 60,000.00 = 40,000.00
Operating profit
gross profit − operating expenses
40,000.00 − 25,000.00 = 15,000.00
Net profit
operating profit − interest & taxes
15,000.00 − 5,000.00 = 10,000.00
Net profit margin
net margin = net profit ÷ revenue × 100
10,000.00 ÷ 100,000.00 × 100 = 10%
Estimates for general information only — not financial advice.
How it works
Gross margin = (revenue − COGS) ÷ revenue; operating margin = (gross profit − operating expenses) ÷ revenue; net margin = net profit ÷ revenue
Questions
- How does the profit margin calculator work?
- Gross margin = (revenue − COGS) ÷ revenue; operating margin = (gross profit − operating expenses) ÷ revenue; net margin = net profit ÷ revenue.
- What do I need to enter?
- Revenue, Cost of goods sold, Operating expenses, Interest & taxes. Optional fields can be left blank.
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