Profit Margin Calculator — How to Calculate Profit & Improve Pricing
Use the Profit Margin Calculator to quickly determine your gross and net profit margins. This tool helps you understand how much of your revenue becomes profit after costs.
👉 Try the Calculator:
Open the Profit Margin Calculator
What the Profit Margin Calculator Does
This calculator computes important business metrics:
- Gross Profit = Revenue − Cost of Goods Sold (COGS)
- Gross Margin (%) = (Gross Profit / Revenue) × 100
- Net Margin (%) = (Net Profit / Revenue) × 100
How to Use It
- Enter your total sales (revenue).
- Enter the cost of goods sold (COGS) or direct costs.
- Enter operating expenses (for net profit calculation).
- Click Calculate to view margins instantly.
Why It Matters
Knowing your profit margins helps you price correctly, identify inefficiencies, and improve profitability. Use this tool to test pricing scenarios and understand their impact.
Benefits
- Set competitive and profitable prices
- Compare product or service profitability
- Make data-driven pricing decisions
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FAQ — Profit Margin Calculator
Is this calculator free?
Yes, the Profit Margin Calculator is free to use — no signup required.
Can I calculate margins for multiple products?
Yes — calculate each product separately to compare margins and decide on pricing strategy.
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