Calculate your business profit margins in seconds. Enter revenue, cost of goods, and expenses to see gross, operating, and net margins. Switch to per-unit mode for product pricing or find the right selling price from your desired margin.
Rent, salaries, marketing, etc.
Gross profit margin measures revenue minus the direct cost of goods sold (COGS), expressed as a percentage of revenue. Net profit margin goes further by also subtracting operating expenses, taxes, and interest. For example, if you sell a product for $100 with $40 in COGS and $30 in operating expenses, your gross margin is 60% and your net margin is 30%. Healthy margins vary by industry: software companies often enjoy 70%+ gross margins, while grocery stores operate on razor-thin 2–3% net margins.
There are two paths to better margins: increase revenue or decrease costs. On the revenue side, consider raising prices, upselling premium versions, or bundling products. On the cost side, negotiate with suppliers, reduce waste, automate repetitive tasks, and optimize your supply chain. Even a 1–2% margin improvement can dramatically impact bottom-line profitability at scale.