Profit Margin Calculator: calculate profit margin for your business. Formula, benchmarks, and practical tips included.
Gross Margin % = (Revenue − COGS) ÷ Revenue × 100
Operating Margin % = (Revenue − COGS − Operating Expenses) ÷ Revenue × 100
Net Margin % = Net Profit ÷ Revenue × 100
Worked example: Revenue 500,000. COGS 200,000. Operating expenses 150,000. Tax and interest 30,000. Gross margin = (500,000 − 200,000) ÷ 500,000 × 100 = 60%. Operating margin = (500,000 − 200,000 − 150,000) ÷ 500,000 × 100 = 30%. Net margin = (500,000 − 200,000 − 150,000 − 30,000) ÷ 500,000 × 100 = 24%.