Calculate gross, operating and net profit margin in seconds. See exactly how much of every dollar of revenue you actually keep, after cost of goods sold, operating expenses and other costs.
Profit margin measures how much of your revenue turns into actual profit at different stages of your income statement. Gross margin shows production efficiency, operating margin shows how well you run the business day-to-day, and net margin shows what's left after everything — including interest and taxes.
Enter values to see your results.
(Revenue − COGS) ÷ Revenue × 100
(Gross Profit − Operating Expenses) ÷ Revenue × 100
(Operating Profit − Other Expenses) ÷ Revenue × 100
Revenue $100,000 − COGS $55,000 = $45,000 Gross Profit (45%). Minus $20,000 OpEx = $25,000 Operating Profit (25%). Minus $5,000 other = $20,000 Net Profit (20%).
| Margin Type | Typical Healthy Range* |
|---|---|
| Gross Margin (Retail) | 20% – 50% |
| Gross Margin (SaaS/Software) | 70% – 90% |
| Operating Margin (most industries) | 10% – 20% |
| Net Margin (average business) | 5% – 15% |
| Net Margin (high-margin services) | 15% – 30% |
Profit margin isn't one number — it's three, each telling you something different about where your money goes.
Check whether a new price or discount still leaves a healthy margin before you commit.
A shrinking margin over time flags rising costs before they hit your bank balance.
Margins are one of the first numbers investors and banks look at when reviewing a business.
Compare margin by product line to see which SKUs are actually worth stocking.
Use current margins to sanity-check next year's revenue and cost projections.
Know your margin before negotiating supplier costs, so you know how much room you have.
Revenue $50,000, COGS $32,000, OpEx $10,000, Other $2,000 → Gross Profit $18,000 (36%), Operating Profit $8,000 (16%), Net Profit $6,000 (12%).
Revenue $200,000, COGS $30,000 (hosting/support), OpEx $90,000, Other $15,000 → Gross Profit $170,000 (85%), Operating Profit $80,000 (40%), Net Profit $65,000 (32.5%).
Revenue $500,000, COGS $420,000, OpEx $60,000, Other $10,000 → Gross Profit $80,000 (16%), Operating Profit $20,000 (4%), Net Profit $10,000 (2%).
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