Profit margin calculator.

Calculate gross, operating, and net profit margins. See where the money goes — and where to defend pricing or cut cost.

Three margins, three different stories.

Each margin answers a different question. Together they show whether you have a pricing problem, a cost problem, or both.

  1. 01
    Gross margin shows pricing power — how much each sale contributes after cost of goods.
  2. 02
    Operating margin shows efficiency — how much survives after running the business.
  3. 03
    Net margin is the bottom line — what actually lands in the bank.
  4. 04
    Comparing all three reveals exactly where money leaks out.

Calculate your margins.

Top-line revenue for the period.

Direct costs to produce / deliver the product.

Salaries, rent, marketing, software, and other recurring costs.

Taxes, interest, one-offs. Leave blank if not applicable.

Common mistakes.

  1. 01
    Confusing gross margin with net margin when evaluating profitability
  2. 02
    Not tracking margins by product/service line
  3. 03
    Ignoring hidden costs (returns, refunds, processing fees)
  4. 04
    Not factoring in founder salary as an operating expense
  5. 05
    Comparing margins across different industries without context
  6. 06
    Focusing only on revenue growth while margins deteriorate

How to improve your margins.

  1. 01
    Increase prices strategically (test 10-15% increases)
  2. 02
    Reduce COGS through better supplier negotiations
  3. 03
    Cut low-margin products and focus on high-margin winners
  4. 04
    Automate processes to reduce operating expenses
  5. 05
    Implement volume-based pricing to reduce per-unit costs
  6. 06
    Reduce overhead: renegotiate rent, cut unused subscriptions
  7. 07
    Improve inventory management to reduce waste
  8. 08
    Bundle products/services to increase average order value

More calculators.

  1. Break-even calculator

    Calculate the sales volume where revenue covers total costs.

  2. Cash flow calculator

    Forecast month-by-month cash position.

  3. Burn rate calculator

    Calculate runway and time to profitability.

  4. All business tools

    The complete collection of free calculators.

Better margins start with a better product.

I build websites and tools that justify premium pricing — the cheapest way to lift margins is to charge what the product is worth.

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