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Business Profit Margin Calculator
Analyze three tiers of profitability: Gross Margin, Operating (EBIT) Margin, and bottom-line Net Margin.
P&L Financial Inputs
Raw materials, direct manufacturing, packaging, gateway fees.
Salaries, office rent, utilities, marketing, software licenses.
Gross Profit
₹12,00,000
60% Margin
Operating Profit (EBIT)
₹6,00,000
30% Margin
Net Profit
₹5,00,000
25% Margin
P&L Margin Cascade
| Total Gross Revenue | ₹20,00,000 | 100.0% |
| (-) Cost of Goods Sold | -₹8,00,000 | 40.0% |
| (=) Gross Profit | ₹12,00,000 | 60% |
| (-) Operating Expenses (OPEX) | -₹6,00,000 | 30.0% |
| (=) Operating Profit (EBIT) | ₹6,00,000 | 30% |
| (-) Taxes & Other Expenses | -₹1,00,000 | 5.0% |
| (=) Net Profit | ₹5,00,000 | 25% |
Margin Formulas
Gross Margin %
Gross % = ((Revenue - COGS) ÷ Revenue) × 100
Operating Margin %
Operating % = (Operating Profit ÷ Revenue) × 100
Net Margin %
Net % = (Net Profit ÷ Revenue) × 100
Frequently Asked Questions
What is the difference between Gross Margin and Operating Margin?
Gross Margin reflects revenue minus Cost of Goods Sold (COGS). Operating Margin also deducts indirect operating expenses such as payroll, marketing, and rent.
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