Calculate Gross, Operating, and Net Profit Margins. Understand your business profitability at each level of the income statement.
Income Statement
Enter your revenue and cost figures
📈 Revenue
$
🏭 Cost of Goods Sold (COGS)
$
$
$
💼 Operating Expenses
$
$
$
🏛️ Below Operating Income
$
%
Net Profit Margin
—
—
Net Profit
$—
Gross Profit Margin
—
Operating Margin
—
EBITDA Margin
—
Net Profit Margin
—
Revenue
—
COGS
—
Gross Profit
—
Gross Margin %
—
Operating Expenses
—
EBIT (Operating Income)
—
EBITDA
—
Interest + Tax
—
Net Profit
—
Net Margin %
—
FAQ
What is gross profit margin?
Gross Profit Margin = (Revenue − COGS) ÷ Revenue. It shows how efficiently a company uses materials and labor. Benchmark: Retail 20-40%, SaaS 60-80%, Service businesses 50-70%.
What is operating profit margin?
Operating Profit Margin (EBIT margin) = Operating Income ÷ Revenue. This includes all operating expenses (SG&A, R&D, D&A) but excludes interest and taxes. A key metric for comparing business efficiency.
What is EBITDA margin?
EBITDA margin adds back Depreciation & Amortization to operating income. It's widely used in M&A and business valuation as a proxy for operating cash flow. Many business loans are priced as a multiple of EBITDA.
What is a good net profit margin?
By industry: Finance 15-30%+, SaaS 15-25%, Healthcare 5-15%, Retail 2-8%, Restaurants 3-9%. Net margin below 5% is thin; above 20% is excellent for most industries. Focus on trends, not just the absolute level.