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Free Vectix Logic tool

Profit-Margin Calculator

Understand how revenue, direct costs and operating expenses affect gross and net margin.

Inputs

Business figures

Enter figures from the same reporting period.

Live result

Margin summary

Gross and net performance at a glance.

Net profit

$20,000.00

Revenue
$100,000.00
Gross profit
$65,000.00
Net profit
$20,000.00
Gross margin
65.0%
Net margin
20.0%

How the margins are calculated

Gross profit is revenue minus direct costs. Net profit also subtracts operating and other expenses. Each margin divides its profit figure by revenue.

Example: $100,000 revenue less $35,000 direct, $40,000 operating and $5,000 other costs produces 65% gross margin and 20% net margin.