BusinessTools Pro

Profit Margin Calculator

Calculate gross and net profit margins to analyze your business profitability. Essential for pricing decisions and financial planning.

How to Use:

1. Enter your total revenue
2. Enter cost of goods sold (COGS)
3. Optionally, enter operating expenses for net margin
4. Click Calculate to see your profit margins

Formulas:
Gross Margin = (Revenue - COGS) ÷ Revenue × 100
Net Margin = (Gross Profit - Operating Expenses) ÷ Revenue × 100

Include rent, salaries, marketing, etc. for net margin calculation

Industry Benchmarks

Retail

Gross Margin: 20-50%
Net Margin: 2-5%

Software/SaaS

Gross Margin: 70-90%
Net Margin: 10-25%

Food Service

Gross Margin: 60-70%
Net Margin: 3-8%