Calculate gross profit, net profit, and profit margins for your business. Essential for small business owners tracking financial health.
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✨ Your Result
🦉Owl's Explanation
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Free business profit calculator for small business financial planning. No sign-up needed.
🤔 How Does This Work?
Gross Profit = Revenue - COGS
Net Profit = Gross Profit - Operating Expenses - Taxes
Margin = (Net Profit / Revenue) × 100
❓ Frequently Asked Questions
What is the difference between gross and net profit?▼
Gross profit = Revenue minus direct costs of producing goods/services (COGS). Net profit = Gross profit minus ALL other expenses (rent, salaries, marketing, taxes). Net profit is the true bottom line.
What is a good profit margin?▼
Varies by industry. Retail: 2-5% net margin is typical. Software/SaaS: 20-40%+ possible. Restaurants: 3-9%. Manufacturing: 10-20%. Compare your margin to industry benchmarks rather than an arbitrary standard.
What is the difference between gross and net profit?▼
Gross profit = Revenue minus direct costs of producing goods/services (COGS). Net profit = Gross profit minus ALL other expenses (rent, salaries, marketing, taxes). Net profit is the true bottom line.
What is a good profit margin?▼
Varies by industry. Retail: 2-5% net margin is typical. Software/SaaS: 20-40%+ possible. Restaurants: 3-9%. Manufacturing: 10-20%. Compare your margin to industry benchmarks rather than an arbitrary standard.