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No Professional Financial Advice: The tools and calculators on this site are provided for educational and informational purposes only. They are not professional financial, legal, tax, or investment advice. The results are mathematical projections based on your inputs and do not guarantee future results.
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Profit Margin Calculator
Calculate gross, operating, and net profit margin. Enter your revenue and costs below.
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Calculator results are estimates based on your inputs. They are useful for learning, planning, and comparison, but they are not professional advice.
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Finance outputs are educational projections, not investment, tax, legal, or financial advice.
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Profit margin formulas
- Gross Margin % = (Revenue - COGS) / Revenue × 100
- Net Margin % = Net Income / Revenue × 100
- Operating Margin % = Operating Income / Revenue × 100
- Markup % = (Revenue - COGS) / COGS × 100
Margin vs markup - what's the difference?
Margin is calculated as a percentage of selling price. Markup is calculated as a percentage of cost. A 50% markup gives you a 33% margin. They are not interchangeable.
What is a good profit margin?
It varies significantly by industry. Software SaaS companies often achieve 60–80% gross margins. Retail averages 20–40%. Restaurants are typically 3–9% net margin. Always compare against your industry benchmark.
Frequently asked questions
Can profit margin be negative?
Yes - a negative margin means you're spending more than you earn. This is common in early-stage businesses but should be temporary.