Profit Margin Analysis Calculator

Analyze gross, operating, and net profit margins based on revenue and expenses.

Total Revenue ($)Cost of Goods Sold (COGS) ($)Operating Expenses ($)

Gross Profit Margin60%

Operating Margin30%

Net Margin (Pre-Tax)30%

Understanding Profit Margins

Profit margins indicate the financial health of a business. They show what percentage of sales has turned into profits after various expenses are deducted.

The Three Tiers

Gross Margin: Revenue minus Cost of Goods Sold (COGS). Shows production efficiency.
Operating Margin: Gross profit minus Operating Expenses (overhead). Shows managerial efficiency.
Net Margin: The "bottom line" after all expenses.