BUSINESS FINANCE CHANNEL
Profit Margin Calculator
Calculate net profit margins based on gross revenue, cost of sales, and general expenses.
Calculator Variables
Calculation Overview
Calculate your business net profit margin percentage based on revenue and total expenses.
Mathematical Model & Formula
Net Margin % = ((Revenue - COGS - OPEX) / Revenue) * 100
Subtracts cost of sales and overhead from total revenue, then divides by revenue to map the net profitability percentage.
Variables Defined:
Worked Example Scenario
Scenario: Revenue = $100k, COGS = $40k, OPEX = $25k.
- Net Profit = $100,000 - $40,000 - $25,000 = $35,000
- Margin = ($35,000 / $100,000) * 100
Result: Net profit margin is 35.00%.
Frequently Asked Questions
What is a good profit margin?
Healthy net margins vary by industry, but generally 10% is average, 20% is high, and 5% is low.