Calculate gross and net profit margins from revenue, cost of goods sold, and operating expenses. See profit amounts and margin percentages instantly.
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Quick answers to common questions
Profit margin is the percentage of revenue that is profit. Gross margin uses revenue minus cost of goods. Net margin also subtracts operating expenses.
Varies by industry. Retail: 2–5% net. SaaS: 15–25% net. Consulting: 10–20% net. Gross margins of 40–60% are common for software.
Gross Margin = (Revenue − COGS) / Revenue. Net Margin = (Revenue − COGS − Expenses) / Revenue.
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