Free tools / Profit margin
Profit margin calculator
Gross, operating and net margin from revenue and costs. Runs in your browser. Nothing is sent anywhere.
Gross margin65.0% $31,200
Operating margin39.2% $18,800
Net margin31.0% $14,900
Gross margin is revenue less the direct cost of what you sold, divided by revenue. It tells you whether the thing you sell is worth selling. Operating margin subtracts the cost of running the business. Net margin subtracts everything else.
A falling gross margin with a flat net margin usually means input costs rose and you absorbed them. A healthy gross margin with a thin net margin means the product works and the overhead does not.