Tililt

Profit Margin Calculator

Gross, operating and net margin from revenue and costs.

How it works

Three margins, three questions. Gross margin asks whether the product itself makes money. Operating margin asks whether the business around the product makes money. Net margin asks what survives financing and tax.

A healthy gross margin with a negative operating margin is an overhead problem. A weak gross margin cannot be fixed by cutting overhead — it is a pricing or sourcing problem.

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