Profit Margin Calculator
Gross, operating, and net profit margin analyzer with what-if scenarios.
Profit margins tell you how much of each dollar of revenue becomes profit. Gross margin = (Revenue − COGS) / Revenue. Operating margin adds in operating expenses. Net margin includes taxes and interest. Healthy benchmarks vary by industry—retail often 2–5% net, SaaS 15–25%. This calculator lets you input revenue and costs to see all three margins and run what-if scenarios.
Inputs
Results
Gross margin: 60%
Operating margin: 25%
Net margin: 20%
Net profit: $2,000
Insights
Formula
Gross margin = (Revenue - COGS) / Revenue Operating margin = (Revenue - COGS - OpEx) / Revenue Net margin = (Revenue - COGS - OpEx - Tax/Interest) / Revenue
Input Definitions
What does each input mean?
- Revenue
- Total sales or income before any deductions.
- COGS
- Cost of goods sold—direct costs to produce/deliver what you sell.
- Operating expenses
- Salaries, rent, marketing, software, admin—day-to-day operating costs.
- Taxes + interest
- Income tax and interest expense. Deducted to get net profit.
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Knowing Your Margin Before You Set a Single Price
Profit margin — net income as a percentage of revenue — is the most fundamental measure of how efficiently a business converts sales into retained earnings. The number has no meaning without context: what’s healthy varies by industry, stage, and business model. This calculator helps you compute gross, operating, and net margins from your actual financials so you can benchmark against yourself over time and against industry norms.
Use this when you’re doing a monthly financial review and want a quick margin snapshot, when you’re building financial models that need a profit assumption, or when you want to understand how a specific cost increase or pricing change would affect bottom-line margins. Tracking margins consistently helps you catch drift before it becomes a problem.