Profit Margin Calculator
Work out gross margin, net profit and net margin from revenue and costs.
- Free
- No sign-up to try
- Works as you type
Profit margin
Gross margin
56.0%
Net profit
$50,000
Net margin
20.0%
- Gross margin = (revenue − cost of goods) ÷ revenue × 100.
- Net profit = revenue − cost of goods − operating expenses.
- Net margin = net profit ÷ revenue × 100.
Free, no sign-up to try. Save it as a live calculator you can share; an estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
How it works
How the Profit Margin Calculator works
- 1
Enter your numbers
Every result updates as you type, with the formula shown under it.
- 2
Check the method
See how each number is worked out and what it assumes.
- 3
Save it as a Room
Share a live calculator: others can change the numbers and see the result update.
Worked example
What it makes
Example inputs
- Revenue
- $250,000
- Cost of goods sold
- $110,000
- Operating expenses
- $90,000
Results
- Gross margin
- 56.0%
- Net profit
- $50,000
- Net margin
- 20.0%
How it's calculated
- Gross margin = (revenue − cost of goods) ÷ revenue × 100.
- Net profit = revenue − cost of goods − operating expenses.
- Net margin = net profit ÷ revenue × 100.
- Assumes: Taxes and interest are not included.
An estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
Who it's for
Who uses it
Small businesses
Check margins each month.
Founders
Share margin scenarios with a co-founder or adviser.
Students
Check margin homework with the method.
Good to know
What to consider
- Taxes and interest are not included.
Questions
About the Profit Margin Calculator
What's the difference between gross and net margin?
Gross margin only takes off the cost of goods sold. Net margin also takes off operating expenses.
Can I share the calculator with my team or a client?
Yes. The Room keeps the calculator live: anyone with the link can change the numbers and see the result update, with the method and assumptions on the same page.
Make your calculator now
Free, no sign-up to try. It becomes a Room you can edit, publish and share.
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