What is it & why use it?
Calculate gross margin and net profit margin percentages for your business with our Profit Margin Calculator. This tool on Calci.in helps entrepreneurs and managers measure profitability effectively.

Formula (explained)
Gross Margin % = (Revenue – COGS) ÷ Revenue × 100
Net Margin % = Net Profit ÷ Revenue × 100
Variables: Revenue = sales income, COGS = cost of goods sold, Net Profit = total profit after all expenses.

Example calculation
Revenue = ₹10,00,000, COGS = ₹6,00,000, Net Profit = ₹2,50,000 → Gross Margin = 40%, Net Margin = 25%.

Benefits & use cases
Understand profitability
Compare gross vs net margins
Useful for business planning

Related calculators on Calci.in
ROI Calculator
Markup & Margin Calculator
Break-Even Point Calculator

External references (authority sources)
Investopedia – Profit Margin
Corporate Finance Institute – Profit Margin

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FAQs
Q1: What is profit margin?
A: A measure of profitability showing percentage of profit from revenue.
Q2: What is gross margin?
A: Revenue minus cost of goods sold, divided by revenue.
Q3: What is net margin?
A: Net profit divided by revenue, includes all expenses.
Q4: Why track margins?
A: They show financial health and efficiency of a business.