Calculate gross, operating and net profit margins from your revenue and costs.
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Total revenue for the period.
Direct costs of producing goods/services.
Salaries, rent, marketing, R&D.
Income taxes and interest payments.
Gross Margin = (Revenue − COGS) ÷ Revenue
Operating Margin = (Revenue − COGS − OpEx) ÷ Revenue
Net Margin = (Revenue − All Costs) ÷ Revenue
Three levels of margin give you a complete picture: product profitability, operational efficiency, and bottom-line profit.
Enter values to calculate.
Varies by industry. SaaS: 15-25% net. Retail: 2-5%. Services: 10-20%. Higher is always better.
Gross margin measures product profitability. Net margin is the bottom line after all expenses, taxes, and interest.
Increase prices, reduce COGS through better sourcing, cut unnecessary OpEx, and improve operational efficiency.
Revenue minus COGS and operating expenses, divided by revenue. It shows how efficiently the core business runs.