Profit Margin Calculator

Calculate profit margins and markups.

Currency:
Profit Margin Details
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.