Profit Margin Calculator
Enter revenue, COGS, and expenses to see gross, operating, and net profit margins.
Calculate all three profit margin metrics in one step: gross margin (revenue minus cost of goods sold), operating margin (after operating expenses), and net margin. Essential for pricing decisions, investor reporting, and benchmarking against industry standards.
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Last reviewed: April 2026Report an error
Rent, salaries, marketing, etc.
Net Profit Margin
20.0%
Gross margin: 40.0% ($40,000). Operating/net margin: 20.0% ($20,000).
Gross Profit
$40,000
40.0% margin
Operating Profit
$20,000
20.0% margin
Net Profit
$20,000
20.0% margin
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How to Use This Profit Margin Calculator
- Enter your total revenue.
- Enter cost of goods sold (COGS).
- Optionally enter operating expenses.
- Read gross profit margin, operating margin, and net margin percentages.
Frequently Asked Questions
- Depends on industry. Retail: 2–5% net margin is normal. SaaS: 60–80% gross margin. Restaurants: 3–9% net. Always compare within your industry.
- Margin = profit ÷ revenue. Markup = profit ÷ cost. A 50% markup equals a 33% margin. They're different ways of expressing the same profit — always clarify which is being used.
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