Free tool
Net profit margin calculator
Enter your revenue and costs for a period. See your gross profit, operating profit and net profit, each as an amount and as a percent of revenue.
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How it works
How it works
Gross profit is revenue minus what the sales cost you directly. Operating profit also subtracts running costs such as rent and wages. Net profit also subtracts interest and tax. Each margin is that profit divided by revenue.
FAQ
About this calculator
What is net profit margin?
Net profit divided by revenue, shown as a percent. It is the share of each dollar of sales that is left after all costs, interest and taxes.
What is the difference between gross, operating and net margin?
Gross margin subtracts only the direct cost of what you sold. Operating margin also subtracts running costs such as rent and wages. Net margin also subtracts interest and taxes.
What is a good net margin?
It varies widely by industry. Compare your margin with your own past periods and with businesses like yours, and check that it covers a fair pay for you.
Do I include my own pay?
If you pay yourself a wage through the business, include it in operating costs. If you take owner draws, they are not an expense, so the margin will look higher than it would with a salary.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Compare the two kinds of profit in gross profit vs net profit, set prices with the margin and markup calculator, or work out cost of goods sold. More free tools: Operating leverage and break-even, DuPont analysis calculator, Early payment discount calculator, or see all free tools.
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