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Profit Margin Calculator

Revenue / Price

Cost / COGS

What is Profit Margin Calculator?

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A profit margin calculator computes gross, operating, and net profit margins — the key measures of how efficiently a business converts revenue into profit.

DigiCalcs delivers precision-engineered tools for engineers and STEM professionals.

Vzorec

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f(x)Gross margin = (Revenue − COGS) / Revenue × 100

How to Profit Margin Calculator

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1Gross margin = (Revenue − COGS) / Revenue × 100
2Operating margin = Operating profit / Revenue × 100
3Net margin = Net profit / Revenue × 100
4Higher margins = more profit retained per £ of sales

Worked Examples

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Example 1

Given:Revenue £100k, COGS £60k, operating costs £25k, tax £3k

Výsledok:Gross margin 40%; Operating margin 15%; Net margin 12%

Real-World Applications

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International travel — converting speeds, temperatures, and distances

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Recipe adaptation between metric and imperial quantities

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Understanding product specifications from different regions

Profit Margin Benchmarks by Industry

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Industry	Gross margin	Net margin
Software/SaaS	70–90%	15–30%
Retail	25–45%	2–6%
Restaurant	60–70%	3–5%
Manufacturing	20–40%	5–10%
Professional services	40–70%	10–25%

Frequently Asked Questions

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What is Profit Margin?

A profit margin calculator computes gross, operating, and net profit margins — the key measures of how efficiently a business converts revenue into profit. Use this calculator for accurate, instant results.

How accurate is the Profit Margin calculator?

The calculator uses the standard published formula for profit margin. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

What units does the Profit Margin calculator use?

This calculator works with inches, British pounds. You can enter values in the units shown — the calculator handles all conversions internally.

What formula does the Profit Margin calculator use?

The core formula is: Gross margin = (Revenue − COGS) / Revenue × 100. Each step in the calculation is shown so you can verify the result manually.

References

›Profit margins — Investopedia

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