Calculator
Profit Margin Calculator
Build a simple income statement and see gross, operating, and net margins.
Your numbers
Direct costs of what was sold: ingredients, inventory, materials.
Running the business: wages, rent, marketing, software.
Results
Gross margin
65%
Operating margin
15%
Net margin
11.7%
$14,000 net profit
| Revenue | $120,000 |
|---|---|
| − Cost of goods sold | −$42,000 |
| Gross profit65% margin | $78,000 |
| − Operating expenses | −$60,000 |
| Operating income15% margin | $18,000 |
| − Interest and taxes | −$4,000 |
| Net profit11.7% margin | $14,000 |
Educational calculator, not financial advice. Results are hypothetical estimates based on the numbers you enter.
How this calculator works
- Gross profit = revenue − cost of goods sold.
- Operating income = gross profit − operating expenses.
- Net profit = operating income − interest and taxes.
- Each margin = that profit ÷ revenue.