Business · Free tool
Profit Margin Calculator
Enter revenue, cost of goods, operating expenses, and other costs to see all three profitability margins plus markup.
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Aligned with IRS guidance
Instant results in-browser
Reviewed by real accountants
The Calculator
Run the numbers
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Gross profit$60,000.00
Gross margin60.00%
Operating income$30,000.00
Operating margin30.00%
Net income$25,000.00
Net margin25.00%
Markup on cost150.00%
How it works
Gross margin measures how efficiently you produce or source what you sell. Operating margin adds the cost of running the business, rent, salaries, marketing. Net margin includes everything, including interest and tax. Markup is different from margin: a 100% markup is only a 50% margin.
Small service businesses typically target 15-25% net margins. Retail and restaurants can be profitable at 3-8%.