Profit Margin Calculator
Calculate gross, operating and net profit margins from revenue, cost of goods sold, operating expenses and taxes.
Your numbers
- Gross margin
- 58%
- Operating margin
- 26%
- Net profit
- $94,800
- Gross profit
- $290,000
- Revenue
- Gross profit
- Operating profit
- Net profit
How the profit margin calculator works
Gross margin = (revenue − COGS) ÷ revenue. Operating margin subtracts operating expenses. Net margin subtracts interest and taxes too.
Example
Using the default inputs (Revenue: $500,000; Cost of goods sold: $210,000; Operating expenses: $160,000; Interest & other: $10,000; Tax rate: 21%), the calculator returns net profit margin of 18.96%. Change any field above to see your own result and charts update instantly.
Good for these goals
Frequently asked questions
What is a good profit margin?
It varies by industry: retail often 2%–5% net, software 20%+, services 10%–20%.
Margin vs markup?
Margin is profit as a share of price; markup is profit as a share of cost.
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Estimates are for educational purposes only and are not financial, tax or legal advice. Results depend on your inputs and simplified assumptions; tax figures reflect 2026 federal rules and may differ from your situation. See our disclaimer. © 2026 FinanzCalc.