Profit Margin Calculator
Calculate your business's gross and net profit margins. Enter your revenue, cost of goods sold and other expenses in the white box. The purple box updates automatically to show your profitability.
How the Profit Margin Calculator works
Profit margin measures how much of your business's revenue remains after deducting costs. This calculator shows both gross profit margin and net profit margin.
Gross profit margin
Gross profit is revenue minus the cost of goods sold (COGS). Gross profit margin is calculated by dividing gross profit by revenue and multiplying by 100.
For example, if your business generates $100,000 in revenue and has $40,000 in direct costs, its gross profit is $60,000 and its gross profit margin is 60%.
Net profit margin
Net profit is calculated by subtracting both cost of goods sold and other business expenses from revenue.
Net profit margin is net profit divided by revenue, multiplied by 100.
A business with $100,000 in revenue, $40,000 in cost of goods sold and $30,000 in other expenses has a net profit of $30,000 and a net profit margin of 30%.
Include all relevant expenses, including taxes and interest where applicable, to estimate a true net profit margin. Otherwise, the result represents profit after only the costs entered.