Profit Margin Calculator
Calculate gross, operating, and net profit margins for your business. See what percentage of each dollar is profit vs cost.
How to Use This Calculator
Select the type of margin you want to calculate: gross margin (revenue minus COGS), operating margin (revenue minus operating expenses), or net margin (revenue minus all expenses). Enter your total revenue and the relevant expense amount. The calculator instantly shows your margin percentage, dollar profit, and a visual breakdown of profit vs costs.
How Profit Margins Work
Profit margin measures how much of each dollar in revenue your business keeps as profit. Gross margin shows profitability after direct production costs (materials, labor). Operating margin adds indirect costs like rent, marketing, and salaries. Net margin accounts for all expenses including taxes and interest. A healthy margin depends on your industry — software companies often have 80%+ gross margins while grocery stores operate on 2-3% net margins. Improving margins through pricing, cost control, or efficiency has a direct impact on your bottom line.