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Profit Margin Calculator

Calculate gross profit margin, net profit margin, and markup.

Gross Profit
₹40,000.00
Net Profit
₹25,000.00
Gross Margin
40.00%
Net Margin
25.00%
Markup on COGS: 66.67%

Calculate gross margin, net margin, and markup instantly

Understanding your profit margins is fundamental to any business. Enter your revenue, cost of goods sold, and operating expenses to see gross and net margins, markup percentage, and the revenue needed to hit any target margin.

Frequently asked questions

What is gross profit margin?
Gross Profit Margin = (Revenue − COGS) / Revenue × 100. It measures how much of each rupee of revenue is left after paying for the cost of goods sold (direct production costs). A higher gross margin means more money available for operating expenses and profit.
What is the difference between margin and markup?
Margin is calculated as a percentage of the selling price: (Selling Price − Cost) / Selling Price. Markup is calculated as a percentage of the cost: (Selling Price − Cost) / Cost. A 50% markup produces a 33% margin. They are not interchangeable.
What is a good profit margin?
It depends on the industry. Grocery/retail: 2–5% net margin. Software/SaaS: 15–25%+. Consulting: 10–20%. Manufacturing: 5–10%. Compare your margins against industry benchmarks rather than a universal standard.
What is net profit margin?
Net Profit Margin = (Revenue − COGS − Operating Expenses − Taxes) / Revenue × 100. It shows the percentage of revenue that becomes actual profit after all expenses. It is the most comprehensive profitability measure.

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