WiseCalc

Profit Margin Calculator

Calculate gross, operating, and net profit margins from revenue and cost figures to evaluate business profitability.

$
$0$2,000,000
$
$0$1,000,000
$
$0$500,000
%
0%50%

Gross profit = revenue − cost of goods sold; operating income subtracts operating expenses. The entered tax rate applies only to positive operating income. Losses receive no modeled tax credit or carryforward. Each margin is income divided by revenue; zero revenue leaves margins undefined while dollar profits/losses remain available. This simplified scenario does not calculate actual tax liability. Displayed money is rounded to cents.

Gross Profit Margin
60.0%
Operating Profit Margin
40.0%
Net Profit Margin
30.0%
Gross Profit
$300,000.00
Operating Income
$200,000.00
Net Income
$150,000.00

Margin Breakdown

Measure How Efficiently Revenue Turns Into Profit

Profit margin shows the percentage of revenue left after costs. It is one of the fastest ways to compare performance across products, time periods, or similar businesses.

Use the right margin for the decision. Gross margin helps with pricing and product mix, while net margin captures the full effect of overhead, taxes, and financing.

How to use this calculator

  1. Enter revenue and the profit figure you want to analyze.
  2. Calculate the margin as profit divided by revenue.
  3. Compare the result with prior periods, targets, or competitors.
  4. Test price and cost changes to see how margin would improve or deteriorate.

Frequently Asked Questions