Profit Margin Calculator
Calculate gross profit, gross margin, operating profit, and operating margin.
Enter your details
Your result
Gross profit
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Gross margin
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Operating profit
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Operating margin
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Enter your assumptions to see a short result summary.
How it works
- Gross profit equals revenue minus cost of goods sold.
- Gross margin expresses gross profit as a percentage of revenue.
- Operating profit in this calculator subtracts both cost of goods sold and the additional operating expenses entered.
- Operating margin expresses that operating profit as a percentage of revenue.
Gross Margin = (Revenue − Cost of Goods Sold) / Revenue × 100
Operating Margin = (Revenue − Cost of Goods Sold − Operating Expenses) / Revenue × 100
Frequently asked questions
What is profit margin?
Profit margin measures how much profit remains from revenue after selected costs are deducted.
What is the difference between gross margin and operating margin?
Gross margin subtracts cost of goods sold, while operating margin in this calculator also subtracts the additional operating expenses entered.
Can the result be negative?
Yes. If costs exceed revenue, the calculator reports a loss and a negative margin.
Disclaimer
This calculator provides simplified business estimates for informational purposes only. Accounting definitions and treatment of expenses may differ by business, accounting policy, jurisdiction, and reporting framework.