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Financial Analysis

Profit Margin Calculator

Calculate gross, operating, and net profit margins. Analyze profitability and compare against industry benchmarks.

Financial Data
Enter your business financial information

Direct costs to produce goods/services

Rent, salaries, marketing, utilities, etc.

Interest, taxes, one-time costs

Per Unit Analysis

Gross Margin

60.0%

$60,000

Operating Margin

25.0%

$25,000

Net Margin

20.0%

$20,000

Profit & Loss Breakdown
Detailed analysis of your $100,000 in revenue
Revenue$100,000
Cost of Goods Sold-$40,000
Gross Profit$60,000 (60.0%)
Operating Expenses-$35,000
Operating Profit$25,000 (25.0%)
Other Expenses-$5,000
Net Profit$20,000 (20.0%)
Per Unit Analysis
Profitability breakdown per unit sold
Price per Unit:$100
Cost per Unit:$40
Gross Profit per Unit:$60
Gross Margin per Unit:60.0%
Units Sold:1,000
Total Revenue:$100,000
Revenue per Unit:$100
Net Profit per Unit:$20
Scenario Analysis
Impact of revenue increases and cost reductions on profitability
ScenarioRevenueGross MarginNet ProfitNet Margin
Current$100,00060.0%$20,00020.0%
10% Revenue Increase$110,00063.6%$30,00027.3%
5% Cost Reduction$100,00062.0%$22,00022.0%
Combined Improvement$110,00065.5%$32,00029.1%
Industry Benchmarks
Compare your margins to industry averages
IndustryAvg Gross MarginAvg Net Marginvs Your Grossvs Your Net
Software/SaaS80%20%-20.0%+0.0%
Professional Services65%15%-5.0%+5.0%
Retail45%8%+15.0%+12.0%
Manufacturing35%12%+25.0%+8.0%
Restaurants60%6%+0.0%+14.0%

Margin Analysis & Recommendations

  • • Your gross margin of 60.0% means $60 of every $100 in revenue covers fixed costs and profit
  • • Net margin of 20.0% is healthy
  • • Operating expenses represent 35.0% of revenue
  • • A 10% revenue increase would boost net profit to $30,000
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Margin Improvement

This quarter's results

+3.9%

net margin improvement

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Revenue Impact

Extra Revenue

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$15,000

+15% boost

Additional Profit

High-margin sales

$3,900

margin gain

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