ZovaTool

Profit Margin Calculator

Gross margin
44.00%
$22,000.00
Operating margin
26.00%
$13,000.00
Net margin
20.80%
$10,400.00
Markup on cost
78.57%

Income statement

Revenue$50,000.00
− COGS$28,000.00
= Gross profit$22,000.00
− Operating expenses$9,000.00
= Operating profit (EBIT)$13,000.00
− Tax$2,600.00
= Net profit$10,400.00

Break-even analysis

Contribution margin / unit
$20.00
40.00%
Break-even units
500
Break-even revenue
$25,000.00
Profit at units sold
$-10,000.00
below BE

How to use the Profit Margin Calculator

  1. Enter revenue, COGS, operating expenses and tax rate.
  2. Read gross, operating and net margin instantly, with absolute dollars for each.
  3. Open the break-even panel to enter fixed costs and variable cost per unit — get units / revenue needed to break even.
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The three margins every business should track

Gross margin = (Revenue − COGS) / Revenue. Tells you whether your product makes money before overhead.

Operating margin layers in salaries, rent and marketing. It's the truest measure of operational health.

Net margin includes taxes and interest. Compare it to industry benchmarks — SaaS often runs 15–25%, grocery retail just 1–3%.