What is the difference between Gross Profit and Net Profit?

Gross profit is your total revenue minus the Cost of Goods Sold (COGS). Net profit goes a step further by also subtracting all operating expenses, taxes, and interest, showing your true bottom line.

How is Profit Margin calculated?

Profit Margin is calculated by dividing your profit (Gross or Net) by your total revenue, then multiplying by 100 to get a percentage. E.g., ($20 Net Profit / $100 Revenue) = 20% Net Margin.

What is the difference between Margin and Markup?

Margin is profit based on the selling price, while markup is profit based on the cost. A 50% markup on a $100 cost equals a $150 price (which is only a 33.3% margin).

Profit Margin Calculator - Free Smart Calculators & AI Tools

Profit Margin Calculator | Gross & Net Profit Engine

💰 Financial Profitability Engine

Total Revenue / Selling Price

Cost of Goods Sold (COGS)

Operating Expenses (OpEx)

⚙️ Advanced: Taxes & Other Deductions ▼

Taxes (Flat Amount)

Other Costs / Interest

Gross Profit

Gross Margin

Net Profit

Net Margin

Markup Percentage (Based on Total Cost)

Revenue Distribution

COGS

OpEx/Tax

Net Profit

Revenue vs Total Cost vs Profit

Rev

Cost

Profit

Financial Breakdown	Amount	% of Rev

✨ AI Quick Verdict

Evaluating your business profitability…

About the Profit Margin Engine

Gross Profit Margin indicates how efficiently you produce or acquire your goods. It only subtracts the direct Cost of Goods Sold (COGS) from your revenue. If this number is low, your product is too expensive to source or make.

Net Profit Margin is your true bottom line. It subtracts everything—COGS, operating expenses (rent, marketing, salaries), and taxes. This reveals the actual cash the business retains. A high Gross Margin but low Net Margin means your operating expenses are bleeding the company dry.

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📈 Profit Margin (Gross/Net)

About the Profit Margin Engine