Business Profit Margin Calculator
What's your actual profit margin? This calculator shows gross, operating, and net margins — so you know exactly where your money is going and where to optimize.
Break Even Point Calculator
Find out when your business becomes profitable
Rent, salaries, software, insurance — costs that don't change with sales
You need to sell 167 units at $50 each (or generate $8,350 in revenue) per month just to cover your costs.
This break even analysis assumes a single product/service at a constant price. For multi-product businesses, calculate weighted average contribution margin. Fixed costs should include all recurring expenses but not one time costs.
Frequently Asked Questions
What is a good profit margin for a small business?+
It varies by industry. Service businesses: 15-30% net margin is healthy. Product businesses: 5-20%. Retail: 2-10%. SaaS: 20-40%. If your margin is below the industry average, you're either underpricing or overspending.
What is the difference between gross, operating, and net margin?+
Gross margin = (Revenue − Cost of goods sold) ÷ Revenue. Operating margin = (Revenue − COGS − Operating expenses) ÷ Revenue. Net margin = Net income ÷ Revenue. Gross shows product profitability. Operating shows business efficiency. Net shows bottom-line health.
How do I improve my profit margin?+
Four strategies: (1) Raise prices (most impactful, least effort). (2) Reduce COGS (find cheaper suppliers, improve efficiency). (3) Cut overhead (renegotiate rent, reduce subscriptions, automate). (4) Increase volume (spreads fixed costs over more revenue).
What is a good profit margin for a small business?
It varies by industry. Service businesses: 15-30% net margin is healthy. Product businesses: 5-20%. Retail: 2-10%. SaaS: 20-40%. If your margin is below the industry average, you're either underpricing or overspending.