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

Annual Revenue *

Cost of Goods Sold (COGS)

Direct costs: materials, direct labor, manufacturing

Operating Expenses

Rent, salaries, marketing, utilities, insurance

Other Expenses (Interest, Taxes, etc.)

Industry (for comparison)

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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Frequently Asked Questions

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