Profit Margin Calculator — Net or Operating Margin
Calculate net or operating profit margin from revenue and costs. Example: revenue 10,000 and costs 7,000 → net margin 30%. Pick the margin type on one page. Educational finance math — not business advice.
How it works
Choose net or operating margin, then enter revenue and the matching cost stack. Margin = profit / revenue × 100. Distinct from markup (cost-based) and from gross margin (COGS-only).
Formula
Margin % = (revenue − costs) / revenue × 100. Notes:
- Net vs operating is a labeling choice here — use costs that match the definition you need.
- Revenue must be > 0; costs can be zero.
- Not a full income statement; taxes and non-cash items are omitted unless included in costs.
Example
Example: revenue 10,000, costs 7,000 → profit 3,000 → margin 30%.
When to use it
- Homework: compute net margin from simplified revenue and costs.
- Compare operating vs net by swapping the cost bundle.
- Cross-check against gross-margin when COGS is the only cost.
Frequently asked questions
What is the sample result?
Revenue 10000 and costs 7000 → 30% margin.
Markup vs margin?
Markup divides by cost; margin divides by revenue.
Why two types on one page?
Net and operating share the same ratio form; pick the cost definition you need.
Is this business advice?
No — educational illustration only.
Important notice
Educational profit margin only — not financial, tax, or investment advice.
References: Investopedia and standard textbook formulas.
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Questions or feedback
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