Use this free profit margin calculator to quickly work out your gross, operating, and net profit margins. Simply enter your total revenue, cost of goods sold (COGS), and operating expenses, and the calculator will instantly show your margin percentages — helping you understand exactly how much of your revenue turns into real profit.

How This Calculator Works:

This calculator uses three standard formulas used by accountants and financial analysts:

• Gross Profit Margin = (Revenue − COGS) ÷ Revenue × 100
• Operating Profit Margin = (Revenue − COGS − Operating Expenses) ÷ Revenue × 100
• Net Profit Margin = Net Income ÷ Revenue × 100

Example: If your business has $50,000 in monthly revenue, $20,000 in COGS, and $20,000 in operating expenses, your operating profit margin would be 20% — meaning 20 cents of every dollar in revenue remains after covering production and operating costs.

• 💡 Gross margin shows production efficiency only — it ignores overhead.
• 💡 Operating margin reflects how well the core business runs day-to-day.
• 💡 Net margin is the true bottom line after taxes and interest.
• 💡 Margin ≠ Markup — they use different formulas and produce different numbers for the same sale.

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