Profit margin calculator — gross, operating and net

Enter revenue, cost of goods and expenses to get each level of profit and margin, plus markup.

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How it works: Profit margin

Gross profit = revenue − cost of goods sold; operating profit = gross profit − operating expenses (rent, salaries, marketing); net profit is after other costs and tax. Each margin is that profit ÷ revenue.

Margin differs from markup: markup compares profit to cost — buy at 60, sell at 100 is a 66.7% markup but a 40% margin.

FAQ

What's a good gross margin?

It depends — restaurants often 60–70%, retail 20–50%, software 70%+.

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