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.
Business Profit Margin Calculator
See your gross, operating, and net margins so you know exactly where your money goes
Disclaimer: Gross margin = (Revenue − COGS) ÷ Revenue. Operating margin = (Revenue − COGS − Operating expenses) ÷ Revenue. Net margin = Net profit ÷ Revenue. Margins vary wildly by industry: service businesses often run 15–30% net, retail 2–10%, and SaaS 20–40%. Benchmark your margin against your own industry before drawing conclusions.
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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.
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