Business Profit Margin Calculator
Calculate your gross margin, operating margin, and net profit margin in one place. Compare against common industry benchmarks and get a health assessment of your business profitability.
Income Statement
Direct costs: materials, direct labor, manufacturing
Rent, salaries, marketing, utilities, insurance
Quick Tips
- •Gross Margin = (Revenue - COGS) / Revenue
- •Operating Margin = Operating Income / Revenue
- •Net Margin = Net Income / Revenue
- •Service businesses typically have higher gross margins
- •Improving margins increases business valuation
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Get Profitability AnalysisHow to Use This Calculator
Enter your total revenue, cost of goods sold, operating expenses, interest, and taxes to calculate all three margin levels at once. The gross margin shows pricing efficiency versus direct costs. The operating margin reveals how well overhead is managed. The net margin shows overall profitability after all obligations. Compare your results against the industry benchmarks shown below the calculator to understand whether your margins are competitive and where there is room to improve before a sale.
Frequently Asked Questions
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