Profit Margin Calculator

Profit margin is the percentage of revenue that remains as profit after deducting costs. A 20% margin means you keep $20 from every $100 in sales.

Gross margin subtracts only the cost of goods sold. Net margin subtracts all expenses including taxes and operating costs, giving a more complete picture of profitability.

It varies by industry. Retail typically sees 2-5%, while software companies can achieve 60-80%. Compare against your industry benchmark for context.