How we calculate this
See methodology- Subtract cost of goods sold from revenue to get gross profit.
- Subtract operating and other expenses to get net profit.
- Divide each profit figure by revenue to get the matching margin percentage.
Profit Calculator
Profit Calculator
Calculate gross profit, net profit, and margins from key business costs.
Formula
Gross profit
Revenue - COGS Net profit
Revenue - COGS - Operating expenses - Other expenses Gross margin %
(Gross profit / Revenue) × 100 Net margin %
(Net profit / Revenue) × 100 Worked example
If revenue is $10,000, COGS is $4,000, operating expenses are $2,500, and other expenses are $500, here is the result.
- Gross profit is $10,000 - $4,000 = $6,000.
- Net profit is $10,000 - $4,000 - $2,500 - $500 = $3,000.
- Gross margin is 60.00%, and net margin is 30.00%.
Frequently Asked Questions
What is the difference between gross profit and net profit?
Gross profit stops after cost of goods sold. Net profit also subtracts operating and other expenses.
What if net profit is negative?
That means the business is operating at a loss for the numbers you entered.
Should I include owner draws as expenses?
That depends on the view you want. Use whichever treatment is most useful for your planning.
Methodology and Trust Note
See full methodologyThese tools are designed to make the math visible, keep assumptions clear, and give you a practical planning result you can review quickly.
This calculator is for educational and planning purposes only. It does not replace professional financial, tax, accounting, or business advice.