Profit Margin
Calculator

Calculate your gross profit, net profit and operating profit margins to understand the health of your business.

Profit Overview
23.8% Net Profit Margin
23.8%
789÷ 456× 123- 0.+

Enter Your Numbers

$
Total income from sales or services
$
Direct costs related to producing your goods or services
$
Expenses related to running your business (e.g. rent, admin, marketing)
$
Any other income outside of core operations (optional) Your effective tax rate

Your Profitability Results

💰
Gross Profit Revenue − COGS
$60,000.00
60.0%
📊
Gross Profit Margin (Gross Profit / Revenue)
60.0%
💼
Operating Profit Gross Profit − Operating Expenses
$40,000.00
⏱
Operating Profit Margin (Operating Profit / Revenue)
40.0%
💼
Net Profit Operating Profit − Tax
$28,000.00
🥧
Net Profit Margin (Net Profit / Revenue)
28.0%

Understanding Profit Margins

Profit margins show how much profit your business makes from each dollar of revenue after different costs.

Learn more about profit margins →
📈
Gross Profit Margin

Shows how efficiently you produce or deliver your products or services.

📈
Operating Profit Margin

Shows how efficiently your business runs after operating expenses.

📈
Net Profit Margin

Shows overall profitability after all expenses and taxes.

What's a Good Profit Margin?

Benchmarks vary by industry. These are general guidelines.

☁
SaaS & Software
15% – 30%+
Net Profit Margin
⛑
Construction & Trades
5% – 15%
Net Profit Margin
👥
Professional Services
10% – 25%+
Net Profit Margin
🛒
E-commerce
5% – 20%
Net Profit Margin
📈

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