Profit Margin Calculator (P&L)

Enter revenue and costs for a period to get gross, operating and net profit and margin.

Calculate

Revenue

Sales for the period.

COGS

Cost of goods sold: what the goods you sold cost you.

Operating expenses

Rent, salaries and other running costs.

Interest and tax

Interest paid plus tax on profit.

Gross profit (USD): $200,000.00

Gross margin (%): 40.00%
Operating profit (USD): $80,000.00
Operating margin (%): 16.00%
Net profit (USD): $60,000.00
Net margin (%): 12.00%

Profit and loss (USD)

Revenue$500,000.00
COGS-$300,000.00
Gross profit$200,000.00
Operating expenses-$120,000.00
Operating profit$80,000.00
Interest and tax-$20,000.00
Net profit$60,000.00

Compare scenariosSave up to three versions and compare them

Scenario A

Scenario B

Scenario C

How it works

Each profit takes one more layer of cost off revenue. Each margin is that profit as a share of revenue.

gross profit = revenue − COGS

operating profit = gross profit − operating expenses

net profit = operating profit − interest and tax

each margin % = profit × 100 ÷ revenue

Worked example

A business has $500,000.00 in revenue, $300,000.00 cost of goods sold, $120,000.00 operating expenses and $20,000.00 interest and tax.

1Gross profit500,000.00 − 300,000.00 = $200,000.00
2Operating profit200,000.00 − 120,000.00 = $80,000.00
3Net profit80,000.00 − 20,000.00 = $60,000.00
4Net margin60,000.00 × 100 ÷ 500,000.00 = 12.00%

Questions

Gross, operating or net?

Gross profit is revenue less the cost of goods sold. Operating profit takes off operating expenses, and net profit takes off interest and tax. Each margin is that profit as a share of revenue.

What if revenue is $0?

The profits are still shown, but the margins are not, because each margin divides by revenue.

How are results rounded?

Every result is rounded once, to 2 decimals, half away from zero. The math before that uses exact decimals, not floating point.

Profit Margin Calculator (P&L)

Results

How it works

Worked example

Questions

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