Profit Margin Calculator
Calculate gross and net profit margins. Essential tool for business owners and entrepreneurs.
Frequently Asked Questions
Can I compare different scenarios?
Adjust the inputs and recalculate to compare different scenarios side by side.
How is the result calculated?
Uses standard mathematical formulas widely accepted in the field. The formula is shown with each result.
Does it show the work?
Yes, step-by-step breakdowns are provided so you can follow the calculation logic.
Can I save my calculations?
Results can be copied to clipboard. Use the Copy or Print button for a permanent record.
How to Use
- Try different values to compare
- Click Calculate to see the breakdown
- Fill in the required values above
- Save or print the results
FAQ
What is profit margin?
Profit margin is the percentage of revenue that becomes profit. Gross margin excludes operating costs; net margin includes them.
What is a good profit margin?
It varies by industry. Retail: 2-5%, Software: 20-40%, Services: 15-25%. Compare within your industry.
Margin vs Markup?
Margin is profit/revenue. Markup is profit/cost. A 50% markup = 33% margin.
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