Profit margin calculator
See how much of every sale you actually keep, at each level of your income statement.
Profit Margin Calculator
Calculate gross, operating and net profit margins, plus markup.
Need professional assistance?
KasemCPA can review your numbers, build the model properly or set it up in Odoo.
Gross margin
(Revenue − cost of goods sold) ÷ revenue. Shows pricing power and production or purchase efficiency.
Operating margin
Operating profit ÷ revenue. Shows how well overheads are controlled.
Net margin
Profit after interest and tax ÷ revenue. What is left for owners.
Markup
Gross profit ÷ cost of goods sold. Often confused with margin: a 50% markup is only a 33% margin.
Get a free review of your results
Optional. Send your inputs and results to a CPA and get a free 15-minute call. We reply within one working day.
FAQ
What is a good profit margin?
It depends on the industry. Retail and distribution often run net margins of 2–6%, services and software 10–25% or more. Compare with your own history and with peers.
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. Selling at 150 something that cost 100 is a 50% markup but a 33.3% margin.