Profit Margin Calculator
Calculate gross margin, net margin, ROI and analyze business profitability
Business Details
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Total income from sales/services
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Direct costs to produce goods/services
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Rent, salaries, utilities, marketing etc.
Industry Presets
Enter your business details to calculate profit margins
Industry Profit Margin Benchmarks
Retail
Gross Margin:25-40%
Net Margin:2-6%
Software/SaaS
Gross Margin:70-90%
Net Margin:15-25%
Manufacturing
Gross Margin:20-35%
Net Margin:5-10%
Services
Gross Margin:50-80%
Net Margin:10-20%
Profit Margin Types
Gross Profit Margin
(Revenue - COGS) ÷ Revenue × 100. Shows efficiency in production and pricing.
Operating Profit Margin
Operating Profit ÷ Revenue × 100. Shows profitability from core operations.
Net Profit Margin
Net Profit ÷ Revenue × 100. Final profitability after all expenses and taxes.
EBITDA Margin
EBITDA ÷ Revenue × 100. Profitability before interest, tax, depreciation, and amortization.
Tips to Improve Margins
Increase Prices Strategically
Small price increases can significantly boost margins
Reduce Cost of Goods
Negotiate better supplier rates, bulk purchasing
Optimize Operations
Reduce waste, improve efficiency, automate processes
Focus on High-Margin Products
Promote and sell products with better margins
Control Operating Expenses
Regular review of rent, utilities, and discretionary spending