Profit Margin Calculator
Compute Gross Profit Margin, Operating Margin (EBIT), Net Profit Margin, and Cost Markup percentages for business profitability optimization.
Gross Margin: — | Net Margin: —
Your business generates net profit margin after deducting direct COGS, operational overhead, interest, and taxes.
Revenue Cost & Profit Split
Profitability Margins Comparison
Comparison of Gross Margin %, Operating Margin %, and Net Profit Margin %
Income Statement Profitability Breakdown
| Financial Line Item | Amount | Share of Revenue |
|---|
Gross vs Net Profit Margin
Gross Margin measures production efficiency (Revenue − COGS), while Net Profit Margin measures total business health after all operating costs, taxes, and interest.
Margin vs Cost Markup
Profit Margin calculates profit relative to Revenue ($\frac{\text{Profit}}{\text{Revenue}}$), whereas Markup calculates profit relative to Cost ($\frac{\text{Profit}}{\text{Cost}}$).
Healthy Net Margin Benchmarks
Software SaaS companies routinely achieve 20%–30% net margins, while e-commerce and retail businesses typically operate at 5%–12% net profit margins.