00 / Free tool
Profit Margin Calculator
Calculate gross, operating, and net profit margins. Compare your numbers against industry benchmarks.
01 / Calculator
Profit Margin Calculator
Enter your numbers
Gross Margin
60.0%
$300,000
Operating Margin
30.0%
$150,000
Net Margin
21.0%
$105,000
Profit Waterfall
See how your revenue flows down to net profit at each stage.
Industry Benchmarks
See how your margins compare. Green = above average, yellow = within 5%, red = below.
| Industry | Gross Margin | Operating Margin | Net Margin |
|---|---|---|---|
| Your Business | 60.0% | 30.0% | 21.0% |
| SaaS / Software | 75% | 25% | 20% |
| Consulting / Services | 60% | 20% | 15% |
| Retail / E-commerce | 40% | 8% | 5% |
| Manufacturing | 35% | 10% | 7% |
| Food Service | 60% | 8% | 5% |
| Healthcare | 55% | 15% | 10% |
02 / Notes
How it works
Profit margins measure how efficiently your business turns revenue into profit at each stage. Gross margin shows how much you keep after direct costs. Operating margin shows what's left after running the business. Net margin is your true bottom line after everything — including taxes. Together, these three numbers tell the complete profitability story.
Formula
Gross Margin = (Revenue - COGS) ÷ Revenue × 100 Operating Margin = (Gross Profit - Operating Expenses) ÷ Revenue × 100 Net Margin = Net Profit ÷ Revenue × 100
Why it matters for your business
Margins reveal where your money goes. A healthy gross margin with a thin net margin means your overhead is eating your profits — time to scrutinize operating expenses. Comparing against industry benchmarks shows whether your business is performing above or below peers.
04 / Next step
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