Profit Margin Calculator
Calculate profit margins and markups.
Profit Margin Calculator
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Profit Margin
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Gross Profit—
Markup %—
Revenue—
Calculate gross, operating, and net profit margins quickly for products or full business lines. Ideal for founders, retailers, freelancers, and finance teams.
Why margin tracking is critical
Revenue growth without healthy margin can create cash stress. Margin analysis helps you price better and control costs before profitability slips.
Profit margin formulas
Gross Margin % = (Revenue - COGS)/Revenue x 100; Net Margin % = Net Profit/Revenue x 100
Use gross margin for product economics and net margin for full business performance.
Use margin analysis for
- Pricing optimization
- Vendor renegotiation
- Product mix decisions
- Quarterly performance tracking
How to calculate margin
- Enter sales revenue
- Enter direct costs (COGS)
- Enter operating and other expenses for net margin
- Review margin percentages
- Benchmark against industry norms
Margin example
Scenario: Monthly revenue Rs 12,00,000, COGS Rs 7,20,000, net profit Rs 1,80,000.
Inputs
- Revenue: Rs 12,00,000
- COGS: Rs 7,20,000
- Net profit: Rs 1,80,000
Calculation
- Gross margin = (12,00,000 - 7,20,000)/12,00,000 = 40%
- Net margin = 1,80,000/12,00,000 = 15%
Result: Business runs at 40% gross margin and 15% net margin.
Frequently Asked Questions
It depends on industry, but stable positive net margin with improving trend is key.
Usually no, margin should be measured on tax-exclusive values.
At least monthly, and weekly for volatile or high-volume businesses.
Yes, replace COGS with direct delivery costs and people costs where relevant.