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Profit Margin Calculator
Calculate your profit margins with our simple profit margin calculator.Work out the profitability of your products and services – all you need to do is enter the numbers and let the calculator do the rest for you.
Profit Margin Calculator
How it works
Profit margin FAQ’s
Gross Profit Margin is a key financial metric that indicates the percentage of revenue that exceeds the cost of goods sold (COGS). It reflects a company’s ability to generate profit from its core business operations before deducting administrative, marketing, and other operating expenses.
Formula:
Where:
- Gross Profit is calculated as .
- Revenue is the total sales or income from operations.
Net Profit Margin is a financial metric that shows the percentage of revenue that remains as profit after all expenses have been deducted. It provides insight into a company’s overall profitability and efficiency in managing its expenses relative to its total revenue.
Formula:
Where:
- Net Profit (also known as Net Income) is calculated as , including the cost of goods sold (COGS), operating expenses, interest, taxes, and any other expenses.
- Revenue is the total sales or income from operations.