Profit Margin Calculator
Calculate profit margins and markups.
Profit Margin Details
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Profitability Summary
| Metric | Amount / Percentage |
|---|
Gross Profit Margin
30.00%
Gross Profit Amount—
Markup Percentage—
Total Revenue—
Cost of Goods (COGS)—
Net Profit (after OpEx)—
Net Profit Margin—
The Finzorio Profit Margin Calculator computes gross profit margin, operating margin, and net profit margin percentages across products, services, e-commerce stores, and retail enterprises.
Understanding Profit Margin Metrics
Profit margins evaluate how effectively a business turns revenue into actual profits. Gross Margin measures pricing efficiency after direct manufacturing/COGS costs. Net Margin measures ultimate profitability after all operating expenses, taxes, and interest costs.
Profit Margin Formulas
Gross Margin % = [(Revenue - COGS) / Revenue] × 100 | Net Margin % = (Net Profit / Revenue) × 100
Worked Example: Retail E-Commerce Profit Margin
Business Numbers: Monthly Sales Revenue = ₹10,00,000, COGS = ₹6,00,000, Operating Costs (Ad spend + Rent + Salaries) = ₹2,50,000.
• Gross Profit = ₹10,00,000 - ₹6,00,000 = ₹4,00,000 (40% Gross Margin)
• Net Profit = ₹4,00,000 - ₹2,50,000 = ₹1,50,000 (15% Net Margin).
Frequently Asked Questions
Profit Margin is expressed as a percentage of the SELLING PRICE, whereas Profit Markup is expressed as a percentage of the COST PRICE.