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Profit Margin Calculator

This profit margin calculator finds both your gross and net profit margin from revenue, cost of goods sold, and operating expenses — two different but complementary views of how profitable your business really is. Enter your numbers to see both.

₹10,00,000

Total sales for the period.

₹4,00,000

Direct costs of producing what you sold.

₹3,20,000

Rent, salaries, marketing and other overhead — not included in COGS.

60.00%

Net profit margin28.00%
Gross profit₹6,00,000
Net profit₹2,80,000

Frequently asked questions

What's a good profit margin?+

It depends heavily on your industry — a 10% net margin might be excellent in grocery retail but poor in software. Compare against industry-specific benchmarks rather than a universal number.

Why is gross margin usually much higher than net margin?+

Gross margin only accounts for direct production costs. Net margin subtracts everything else — rent, salaries, marketing, admin — which for most businesses is a substantial additional cost that narrows the margin considerably.

Does this account for taxes?+

No — this is a pre-tax operating profitability view. A true after-tax net margin would subtract income tax as well, which varies by business structure and jurisdiction.

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