Profit Margin Calculator
Calculate all three key profit margins — gross, operating, and net — from your revenue and cost figures.
How it's calculated
Gross margin = (Revenue − COGS) ÷ RevenueOperating margin = (Gross profit − OpEx) ÷ RevenueNet margin = Operating profit − Tax & interest) ÷ Revenue
Frequently Asked Questions
- What is a good profit margin for a UK business?
- Margins vary widely by industry. Retail typically sees 2–10% net margin, SaaS companies 20–40%, and professional services 15–30%. Compare to your industry benchmark rather than a single figure.
- What is the difference between gross and net profit margin?
- Gross margin only deducts cost of goods sold from revenue, showing production efficiency. Net margin deducts all costs including operating expenses, tax, and interest, showing overall profitability.
- What counts as operating expenses (OpEx)?
- Operating expenses include rent, salaries, marketing, utilities, and administrative costs — but not cost of goods sold (COGS), which is already accounted for in gross profit.