Profit Calculator

Gross profit is revenue minus cost of goods sold (COGS) — the direct costs of producing your product. Net profit is gross profit minus all operating expenses (rent, salaries, marketing, utilities, taxes). A business can have healthy gross profit but poor net profit if overhead is too high.

Profit percentage = (Profit / Revenue) x 100. If revenue is $100,000 and profit is $25,000, the profit percentage is 25%. This metric tells you what fraction of each dollar in sales becomes profit. It is the same as profit margin and is the standard measure of business profitability.

It varies significantly by industry. Software companies: 20-40% net margin. Retail: 2-5%. Restaurants: 3-9%. Professional services: 15-30%. Manufacturing: 5-15%. Compare your margin to industry averages rather than absolute numbers. Consistently improving margin is more important than hitting a specific target.

Two fundamental approaches: increase revenue (raise prices, sell more volume, add higher-margin products) or decrease costs (negotiate with suppliers, reduce waste, automate processes, cut unnecessary expenses). The calculator helps you model different scenarios to see which changes have the biggest impact.

Yes — enter each product with its revenue and cost separately. The calculator shows profit for each product and the combined total. This helps identify which products are most profitable and which may be losing money or dragging down your overall margin.