📈 Profit Margin Calculator

Revenue / Selling Price

Cost of Goods Sold (COGS)

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Gross Profit Margin

📊 Full Income Statement Analyser

Enter your P&L line items for all three margin calculations.

Revenue

COGS

Selling & Marketing Expenses

General & Admin Expenses

Depreciation & Amortisation

Interest Expense

Tax (amount or rate %)

🏭 Industry Profit Margin Benchmarks

Typical gross and net profit margins by industry (approximate). Your margins are shown where available.

Industry	Gross Margin	Net Margin	Trend

Data represents typical ranges. Actual margins vary by company size, geography and competitive positioning. High gross margin does not guarantee high net margin — operating expenses determine the difference.

📐 Profit Margin Formulas

Three Types of Profit Margin

Gross Profit = Revenue - COGS Gross Margin % = Gross Profit / Revenue × 100 Operating Profit = Gross Profit - Operating Expenses = Gross Profit - (Selling + G&A + D&A) Operating Margin % = Operating Profit / Revenue × 100 (also called EBIT margin) Net Profit = Operating Profit - Interest - Tax Net Margin % = Net Profit / Revenue × 100 Example: Revenue ₹10L, COGS ₹6L, Opex ₹1.8L, Tax ₹50K Gross Profit = 10L - 6L = ₹4L → Gross Margin 40% EBIT = 4L - 1.8L = ₹2.2L → Op Margin 22% Net Profit = 2.2L - 0.5L = ₹1.7L → Net Margin 17%

Finding Selling Price from Target Margin

Price = Cost / (1 - Margin%) Example: Cost ₹3,00,000, Target Margin 40% Price = 3,00,000 / (1 - 0.40) = 3,00,000 / 0.60 = ₹5,00,000 Note: This is different from markup! Markup 40% would give: 3,00,000 × 1.40 = ₹4,20,000 But margin 40% requires: ₹5,00,000 Margin % is based on REVENUE; markup on COST.

❓ Frequently Asked Questions

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AI-powered margin improvement recommendations, cost optimisation and competitive benchmarking for your industry.

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📈 Profit Margin Calculator