Free Calculator Tool

Profit Margin Calculator

Calculate your gross and net profit margins instantly. Compare your results to industry benchmarks.

Enter Your Numbers

Total Revenue ($)

Cost of Goods Sold ($)

Direct costs to produce/purchase goods you sold

Operating Expenses ($)

Rent, wages, utilities, insurance, etc.

Your Results

Gross Profit

$0.00

Gross Margin

0.00%

Net Profit

$0.00

Net Margin

0.00%

How to Calculate Profit Margin

Gross Profit Margin Formula

((Revenue - COGS) / Revenue) × 100

Shows how much you keep from each dollar of sales after paying for the goods you sold.

Net Profit Margin Formula

((Revenue - All Expenses) / Revenue) × 100

Shows your true bottom-line profit after ALL expenses are paid.

Industry Profit Margin Benchmarks

Industry	Gross Margin	Net Margin
Gas Stations	2-5%	1-3%
Convenience Stores	25-35%	2-5%
Restaurants	60-70%	3-9%
Retail Stores	25-50%	2-5%

Want to Track Your Margins Automatically?

Stop calculating manually. Upload your sales data and InsightDash will track your margins daily, weekly, and monthly.

Create Free P&L Dashboard

No credit card required Results in 60 seconds

Frequently Asked Questions

How do you calculate profit margin?

Profit margin is calculated by dividing your profit by revenue and multiplying by 100. Gross Profit Margin = ((Revenue - Cost of Goods Sold) / Revenue) × 100. Net Profit Margin = ((Revenue - All Expenses) / Revenue) × 100.

What is a good profit margin for a small business?

A good profit margin varies by industry. Gas stations typically have 1-3% net margins, convenience stores 2-5%, restaurants 3-9%, and retail stores 2-5%. Focus on comparing your margins to your specific industry benchmarks.

What is the difference between gross margin and net margin?

Gross margin only subtracts the cost of goods sold from revenue, showing profitability before operating expenses. Net margin subtracts ALL expenses (including rent, wages, utilities) from revenue, showing your true bottom-line profitability.