Business
Profit Margin Calculator
Calculate gross profit, net profit and both margin percentages for your Australian business from revenue, cost of goods sold and operating expenses.
$
$
$
$
Your results
Gross profit$55,000.00
Gross margin55%
Total expenses$70,000.00
Net profit$30,000.00
Net margin30%
Calculation breakdown
- Gross profit
- $100,000 − $45,000 = $55,000.00
- Net profit
- $100,000 − (COGS + opex + other) $70,000 = $30,000.00
Assumptions
- Figures relate to a single, consistent reporting period.
- Operating expenses exclude cost of goods sold.
- Margins are shown as zero when revenue is zero, avoiding a divide-by-zero result.
- Tax and other expenses are optional and default to zero.
How this calculator works
Gross margin measures product profitability after the direct cost of goods sold. Net margin measures the whole business after operating and other expenses. This calculator produces both from a single set of inputs.
Frequently asked questions
Margin or markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of cost. Markup is always the larger number.
What is a healthy net margin?
It varies enormously — supermarkets run on a few percent while software businesses can exceed 20%.
Should figures include GST?
No. Use GST-exclusive amounts if you are registered for GST.
Results are estimates only and are not financial, tax, legal or credit advice.
Related calculators
Markup CalculatorSet a selling price from your cost using a target markup or margin percentage, or reverse-engineer both figures from an existing Australian retail price.Break-Even CalculatorWork out how many units your Australian small business must sell to cover fixed costs, plus the revenue and profit generated at your expected sales volume.GST CalculatorAdd or remove Australia's 10% Goods and Services Tax from any amount instantly using the standard ATO divide-by-eleven calculation method for GST.ABN Tax and GST Set-Aside CalculatorWork out how much of your ABN income to set aside for GST and income tax so quarterly BAS lodgements and tax time never catch your business by surprise.