Calculate gross margin, operating margin, and net profit margin from your revenue, COGS, and operating expenses.
Last updated: February 23, 2026
Total sales or revenue
Direct costs to produce goods/services
Rent, salaries, marketing, admin, etc.
Profit margin measures how much of every dollar of revenue a company keeps as profit. There are several types of profit margin, each offering a different view of a company's financial health.
Gross margin shows the percentage of revenue remaining after subtracting the direct costs of producing your goods or services (COGS).
Gross Margin = (Revenue - COGS) ÷ Revenue × 100
A high gross margin means you have a significant spread between what it costs to produce your product and what you sell it for. Software companies often have gross margins above 70%, while grocery stores might operate at 25-30%.
Operating margin goes further by also subtracting operating expenses — rent, salaries, marketing, utilities, and other overhead. This tells you how profitable your core business operations are.
Operating Margin = (Gross Profit - Operating Expenses) ÷ Revenue × 100
Operating margin is often considered the most important margin for evaluating business efficiency because it captures both production costs and the overhead needed to run the business.
Net margin accounts for everything: COGS, operating expenses, interest, taxes, and any other costs. It is the "bottom line" percentage. This calculator focuses on gross and operating margins since net margin requires tax and interest data that varies significantly by situation.
Profit margins vary widely by industry. Here are rough benchmarks:
Compare your margins to others in your specific industry rather than using a universal benchmark. A 5% net margin that is above average for your industry is better than a 15% margin that is below average.
Calculate gross margin, operating margin, and net profit margin from your revenue, COGS, and operating expenses. This tool runs in-browser for fast results without account setup.
Yes. Profit Margin Calculator is free to use on ConvertCrunch.
Results depend on the inputs and assumptions you provide. Always validate final numbers or outputs against your official workflow before publishing or filing.
ConvertCrunch tools are built for immediate use with no signup required.
This tool is part of larger workflows. Open a hub to continue with the next relevant tools.
Paycheck, withholding, tax planning, and reimbursement workflows for recurring money operations.
Cost, ROI, and automation decision workflows for AI adoption and growth planning.
Pricing, margin, tax, and workload tools for independent operators.
Continue your workflow with these tools from the same playbook.
Paycheck Calculator
Estimate take-home pay after federal taxes, state taxes, and payroll deductions for hourly or salary income.
Overtime Pay Calculator
Calculate overtime pay based on regular hours, overtime hours, and labor law overtime multipliers.
US Income Tax Estimator
Estimate your income tax using current tax brackets and deduction values.. Free online, browser-based tool with instant results and no signup.
US Quarterly Tax Payment Calculator
Calculate your estimated quarterly tax payments to avoid underpayment penalties. Perfect for freelancers and small business owners.
Billable Utilization Calculator
Measure billable utilization rate from available hours, non-billable time, and target capacity.
Cost-Plus Pricing Calculator
Set selling prices from unit costs and target markup while testing multiple margin scenarios.
Discount & Sale Price Calculator
Calculate sale prices, discount percentages, double discounts, and original prices. See why stacked discounts aren't additive.
Freelance Rate Calculator
Calculate your ideal hourly or project rate based on your desired salary, expenses, taxes, and billable hours.
Late Payment Interest Calculator
Calculate overdue invoice interest based on principal, annual rate, and days late.
Markup & Margin Calculator
Convert between markup and margin percentages instantly. Calculate selling price from cost and desired profit.
Net-to-Gross Calculator
Estimate required quote amount to hit a target take-home after tax and expenses.
Project Pricing Calculator
Price fixed-scope projects using hours, rates, risk buffer, and overhead assumptions.
Next Step
Continue with Paycheck Calculator