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Profit margin calculator

Calculate gross and net profit margins from revenue, cost of goods and operating expenses.

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Profit margin calculator for United States

USD · 12,345.67US customary measurementsRoad distance: miles

United States planning scenario. Amounts, prices and rates are editable examples. No verified local tax bands, exemptions, benefits or lender rules are applied. Currency amounts are not exchanged.

Switch countries to open a separate scenario. Your edits are kept while this calculator is open; use Save scenario to keep them on this device.

Your details

USD
Example only. Enter the amount or rate applicable to your situation in United States.
USD
Example only. Enter the amount or rate applicable to your situation in United States.
USD
Example only. Enter the amount or rate applicable to your situation in United States.
Results update instantly as you change the inputs.

Net margin

30%

Amounts in USD · United States · editable planning estimate

Net profit$3,000.00
Gross margin40%
Gross profit$4,000.00
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How this result was calculated

  1. Gross profit = revenue − goods cost
  2. Net profit = gross profit − operating costs
  3. Margin = profit ÷ revenue × 100
  4. Country setup: United States. Displayed measurements are converted to the formula's base units internally.

Assumption: Simple period profit calculation. Tax, depreciation and accounting adjustments are excluded. United States planning scenario. Amounts, prices and rates are editable examples. No verified local tax bands, exemptions, benefits or lender rules are applied. Currency amounts are not exchanged.

Calculation version 1.0.0 · Support state: generic

Guides & conversions

Profit margin vs markup: choose the right percentage
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Formula and method

Gross margin = (revenue − cost of goods) ÷ revenue × 100. Net margin = (revenue − cost of goods − operating expenses) ÷ revenue × 100.

This calculation uses the values you enter. It runs in your browser and does not request a location or account.

Worked example

With 10,000 in revenue, 6,000 in goods costs and 1,000 in operating costs, gross margin is 40% and net margin is 30%.

Questions people ask

What is the difference between gross and net margin?

Gross margin subtracts goods costs. Net margin also subtracts the operating expenses you enter.

Can margin be negative?

Yes. A negative margin means the entered costs exceed revenue.