Business

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Profit Margin Calculator

Calculate gross, operating, and net profit margins. Measure business profitability.

Quick Answer

Profit margin shows what percentage of revenue becomes profit. Gross margin excludes overhead; net margin is your true bottom line. Compare against industry benchmarks to gauge performance.

Results update automatically as you type

Business Financials

Revenue

Cost of Goods Sold

Operating Expenses

Other Expenses (Tax, Interest)

Gross Margin

60.0%

$60,000

Operating Margin

30.0%

$30,000

Net Margin

25.0%

$25,000

Profit Breakdown

Revenue$100,000

Cost of Goods Sold-$40,000

Gross Profit$60,000

Operating Expenses-$30,000

Operating Profit$30,000

Other Expenses-$5,000

Net Profit$25,000

Pro Tips

•Run multiple scenarios with different values to understand your options
•Bookmark or share your results to reference later
•Check the FAQ section below for answers to common questions

Common Mistakes

•Not accounting for inflation over long time periods
•Forgetting to include all relevant fees and costs
•Using estimates when actual numbers are available

What's Next?

Business Guide

Learn more about business strategies

Related Calculators

Explore more tools for your financial planning

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Sources & Accuracy

Last updated: January 10, 2025

Reviewed by: CalcGrid Editorial Team

Data Sources:

Small Business Administration(2024)

Learn more about how we calculate and our editorial standards.

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