Inputs

$

Total sales or income

$

Direct costs to produce goods

$

Business operational costs

$

Additional business expenses

Results

Net Profit Margin

15.00%

Gross Margin

40.0%

Operating Margin

20.0%

Gross Markup

66.7%

Profit Breakdown

Revenue:$10,000.00
Gross Profit:$4,000.00
Operating Profit:$2,000.00
Net Profit:$1,500.00

Margin vs Markup

• Margin = (Profit ÷ Revenue) × 100 - Shows profit as percentage of sales
• Markup = (Profit ÷ Cost) × 100 - Shows profit as percentage of cost

💡 Aim for gross margins of 50%+ for healthy product profitability. Monitor all three margin types to identify cost-cutting opportunities.

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Guide

How to Use This Calculator

  1. Choose your calculation type
  2. Enter revenue and cost details
  3. Add all relevant expenses
  4. Review profit margins and analysis

Profit Margin Types

  • • Gross Margin: Revenue minus cost of goods sold
  • • Operating Margin: Includes operational expenses
  • • Net Margin: Your final profit after all expenses

Business Tips

  • • Monitor gross margin to assess product profitability
  • • Track operating margin to control business costs
  • • Compare your margins to industry benchmarks