Profit Margin Calculator

Calculate your gross, operating, and net profit margins. Compare against industry averages.

Your Financials

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Direct costs: materials, labor, manufacturing

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Rent, utilities, marketing, admin, salaries

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Understanding Profit Margins

Gross Margin = (Revenue - COGS) / Revenue. Shows how efficiently you produce or source your products.

Operating Margin = (Revenue - COGS - Operating Expenses) / Revenue. Shows how efficiently you run your business day-to-day.

Net Margin = (Revenue - All Expenses) / Revenue. The bottom line — what you actually keep.

Healthy margins vary wildly by industry. Software companies often have 70%+ gross margins, while restaurants typically run 3-9% net margins. Compare against your industry, not across industries.

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