Profit margin calculator
Profit margin is profit divided by revenue, shown as a percentage. Net margin uses net income, operating margin uses operating income, and gross margin uses gross profit. A 25% net margin means the company keeps 25 cents of every revenue dollar after all expenses. Margins let you compare profitability across companies of very different sizes, because they normalise for revenue. Higher is generally better, but typical margins vary widely by industry.
Calculator
Formula
Profit margin = (Profit ÷ Revenue) × 100%
How to use it
Enter the figures above — you can pull them straight from a company's 10-K on SEC EDGAR or from a FilingFacts company page. The result updates instantly and nothing you type leaves your browser. This is an educational tool, not investment advice.
Frequently asked questions
How do you calculate profit margin?
Divide the profit figure by revenue and multiply by 100. For net margin, use net income; for operating margin, use operating income. Example: $112B net income on $416B revenue is a 26.9% net margin.
What is the difference between gross, operating and net margin?
Gross margin is revenue minus the cost of goods sold; operating margin also subtracts operating expenses like R&D and SG&A; net margin subtracts everything including interest and tax. Each strips out more costs, so net margin is the lowest of the three.
What is a good profit margin?
It is highly industry-dependent. Software and payment networks can post net margins above 30%, while grocery and airline businesses often run in the low single digits. Compare against direct competitors, not across sectors.