Calculate gross profit margin, net profit margin, and markup percentages for your business.
Loading calculator...
Embed this profit margin calculator on your website for free. It's responsive, always up-to-date, and easy to customize.
Total sales revenue
Direct costs of producing goods/services
SG&A, marketing, admin expenses
Interest on loans and debt
Income taxes and other taxes
One-time or extraordinary expenses
Profit margins vary significantly by industry. Software companies often have 70-90% gross margins, while grocery stores typically operate on 1-3% net margins. Compare your margins to industry averages to assess competitiveness and identify improvement opportunities.
Profit margin analysis helps evaluate pricing strategies, cost control effectiveness, operational efficiency, and overall business health. It's crucial for investor presentations, loan applications, and strategic planning.
Input your total sales revenue for the period you're analyzing.
Input direct costs to produce your products or services (materials, direct labor, manufacturing costs).
Input indirect costs like rent, utilities, marketing, administrative expenses, and salaries.
Get gross margin, operating margin, and net margin with detailed breakdowns.
Use the results to adjust pricing, reduce costs, or improve operational efficiency.
Excellent pricing power and low direct costs. Indicates strong competitive position and efficient production.
Healthy margin range for most businesses. Focus on controlling operating expenses to improve net profitability.
May indicate pricing pressure or high production costs. Consider cost reduction or premium pricing strategies.
Business is losing money. Immediate action needed to reduce costs, increase prices, or improve operational efficiency.
Enter revenue and costs to see gross, operating, EBITDA, and net margins with context. Compare against simple industry ranges and track changes over time.
Work forwards or backwards. Enter any two to solve the others, then explore how small changes in price or cost shift your margins. Good for quick pricing checks and sanity‑testing quotes.
Margin, markup, cost and price are tied together. Solve any pair.
See results as percentages and ratios for clarity.
Nudge price or cost to see margin impact immediately.
Profit margin vs markup, pricing calculator, margin sensitivity, cost to price math
Pair with CVP and ROI for a fuller picture.
Important: This profit margin calculator is designed for business planning, financial analysis, and educational purposes using standard profit margin formulas and common business metrics. While calculations are mathematically accurate for basic profit margin analysis, actual business profitability involves complex factors including accounting policies, seasonal variations, inventory methods, depreciation schedules, tax implications, and market conditions that are not captured by simplified margin calculations. For business decisions, financial reporting, investor presentations, or strategic planning, consider comprehensive financial analysis, consult qualified accountants or financial advisors, and use detailed financial modeling that accounts for the specific complexities and regulatory requirements of your business and industry.