Gross, operating and net margin calculator
Three layers of profitability from the same revenue figure. It opens on a worked example — change any number. Nothing you enter is saved.
Gross margin
40%
- Operating margin
- 10%
- Net profit margin
- 7.6%
Operating margin: Operating income = revenue − COGS − operating expenses.
The formula
- Gross margin = (revenue − COGS) ÷ revenue × 100
- Operating margin = operating income ÷ revenue × 100
- Net profit margin = net income ÷ revenue × 100
How to read it
Watching all three shows where profit goes: production costs (gross), running the business (operating), or financing and taxes (net). Confirm how your books classify costs with your accountant.
Definitions, a full worked example and common pitfalls are in our guide: Gross, Operating and Net Profit Margin Explained.
General information, not accounting, tax or financial advice. Definitions vary between companies — match the formula to how your own systems count.