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)
| Industry | Typical Range |
|---|---|
| Retail | 2-5% |
| Restaurants | 3-9% |
| Technology | 15-25% |
| Consulting | 10-20% |
| Manufacturing | 5-15% |
| Healthcare | 8-15% |
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