Profit Margin Calculator
Revenue (Selling)
Cost
Profit
Margin / Markup
Profit Margin Calculator Guide
What is it & Why use it?
Calculate gross margin and net profit margin percentages for your business. This tool helps entrepreneurs and managers measure profitability effectively by comparing revenue against costs and expenses.
Net % = Net Profit ÷ Revenue
Example Calculation
Business with ₹10L Revenue, ₹6L COGS, and ₹2.5L Net Profit:
Benefits & Use Cases
Analyze Profit
Understand exactly how much of every rupee earned is kept as profit.
Gross vs Net
Distinguish between direct production costs (gross) and total overheads (net).
Business Planning
Essential for pricing strategies, cost reduction, and attracting investors.
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Frequently Asked Questions
Q1: What is profit margin?
It is a profitability metric that shows what percentage of revenue remains as profit after costs are deducted.
Q2: What is gross margin?
Gross margin is revenue minus the direct Cost of Goods Sold (COGS), divided by revenue.
Q3: What is net margin?
Net margin is net profit (all expenses deducted) divided by revenue. It is the bottom-line profitability.
Q4: Why track margins?
Tracking margins helps monitor financial health, operational efficiency, and pricing effectiveness.