Profit Margin Calculator

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

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Fill in the form and click "Calculate" to see your profit margins

Understanding Profit Margins

Gross Profit Margin: This shows the percentage of revenue that exceeds the cost of goods sold. A higher gross margin indicates that you're making more money on each product/service sold before accounting for operating expenses.

Net Profit Margin: This represents the percentage of revenue that remains after all expenses are deducted. It's your true bottom line profitability and shows how efficiently your business is operating.

Industry Benchmarks: Healthy profit margins vary by industry. Retail businesses typically have gross margins of 25-50%, while service businesses might see 60-90%. Net margins of 10-20% are generally considered good for many industries.

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