Profit Margin Calculator

Revenue ($)

Cost of Goods Sold ($)

Operating Expenses ($)

Quick Calculations

Gross Profit

$0.00

0%

Net Profit

$0.00

0%

Markup

0%

Understanding Profit Margins

Different types of profit margins help you understand your business's financial health:

Gross Margin: (Revenue - COGS) ÷ Revenue
Net Margin: (Revenue - COGS - Operating Expenses) ÷ Revenue
Markup: (Revenue - COGS) ÷ COGS

Industry Benchmarks

Retail: 25-35% gross margin
Manufacturing: 30-40% gross margin
Services: 60-70% gross margin
Software: 70-80% gross margin

Tips for Improving Margins

Reduce cost of goods sold
Optimize pricing strategy
Minimize operating expenses
Increase sales volume
Focus on high-margin products