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Profit Margin Calculator

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Gross Margin40.00%
Operating Margin25.00%
Net Margin20.00%
Gross Profit$40,000.00
Operating Profit$25,000.00
Net Profit$20,000.00
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Frequently Asked Questions

What is gross margin?
Gross margin is revenue minus cost of goods sold (COGS), divided by revenue. It shows how much profit you keep after direct production costs. Higher is better; industry averages vary widely (software ~70–80%, retail ~20–30%).
What is a good profit margin?
It varies by industry. Net margins: SaaS (20–30%), retail (2–5%), restaurants (3–5%), professional services (15–25%). Compare to your industry benchmark rather than a universal number.

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