Profit Calculator — Gross & Net Profit Margin
Enter revenue, cost of goods sold, and operating expenses to instantly get gross profit, net profit, gross margin, net margin, and markup on COGS.
Revenue minus COGS and operating expenses
20 %
Net marginCOGS
60%
Operating expenses
20%
Net profit
20%
- 1
Gross profit
50,000 − 30,000 = 20,000 - 2
Gross margin
20,000 ÷ 50,000 × 100 = 40 % - 3
Net profit
20,000 − 10,000 = 10,000 - 4
Net profit margin
10,000 ÷ 50,000 × 100 = 20 %Share of each revenue unit that becomes profit after all operating costs.
How does this calculator work?
Gross profit = Revenue − COGS; Net profit = Revenue − COGS − OpEx. Enter all three to get gross and net profit margins plus markup on cost. The donut chart shows how each revenue dollar splits between direct costs, overhead, and profit.
Formula
How this is calculated
Profit is measured at two levels. Gross profit strips away only the direct cost of producing or acquiring the goods or services sold (COGS) from revenue, giving a measure of how efficiently the core activity earns money before overhead. Gross margin (gross profit ÷ revenue × 100) lets you compare profitability across products or periods regardless of revenue scale.
Net profit then subtracts operating expenses — the indirect costs of running the business such as rent, salaries, marketing, and administration — to give the bottom-line surplus (or deficit). Net profit margin is the share of each currency unit of revenue that becomes profit. Markup on COGS expresses gross profit as a percentage of cost rather than revenue, which is the perspective manufacturers and retailers use when pricing.
This calculator does not include interest, taxes, depreciation, or amortisation (EBITDA, EBIT, or pre-tax profit). To model those, enter only the costs you want included in each field, or add interest and depreciation to operating expenses for a simplified approximation.
Frequently asked questions
Gross profit = Revenue − COGS, covering only direct production costs. Net profit also subtracts operating expenses (overhead), giving the true bottom-line result after all regular operating costs.
Profit margin is gross profit expressed as a percentage of revenue (selling price). Markup is gross profit as a percentage of cost. For the same transaction, markup is always higher than margin — a 50 % markup corresponds to a 33 % margin.
No. This calculator works with whatever cost figures you enter. To approximate after-tax profit, reduce net profit by your effective tax rate outside the calculator, or add depreciation and amortisation to operating expenses if you want to model EBIT.
Also known as
TG we-Calculate Editorial Team. (2026). Profit Calculator — Gross & Net Profit Margin [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/profit-calculator
TG we-Calculate Editorial Team. "Profit Calculator — Gross & Net Profit Margin." TG we-Calculate. 2026. https://we-calculate.com/calculator/profit-calculator.
TG we-Calculate Editorial Team, "Profit Calculator — Gross & Net Profit Margin," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/profit-calculator
@misc{wecalculate_profit_calculator, title = {Profit Calculator — Gross & Net Profit Margin}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/profit-calculator}}, year = {2026}, note = {TG we-Calculate} }
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