Profit Margin Calculator
Calculate gross margin, net margin, and markup percentages for your business
Instant Calculations Business Insights Financial Analysis🔒 100% Free
Profit Margin Calculator
AED
AED
Gross Profit:AED 0.00
Gross Profit Margin:0.00%
Understanding Profit Margins
Gross Profit Margin
Measures profitability after direct costs (COGS). Shows how efficiently you produce goods/services.
• Good: 20-40%
• Excellent: 40%+
Net Profit Margin
Overall profitability after all expenses. The bottom line of your business performance.
• Good: 10-20%
• Excellent: 20%+
Markup vs Margin
Markup is profit % of cost. Margin is profit % of selling price.
• 100% markup = 50% margin
• 50% markup = 33% margin
Frequently Asked Questions
What's a healthy profit margin?
It varies by industry. Retail: 2-5%, Restaurants: 3-5%, Software: 20-40%, Professional Services: 15-25%.
How to improve profit margins?
Reduce costs, increase prices, improve efficiency, focus on high-margin products, or achieve economies of scale.
Gross vs Operating vs Net margin?
Gross: Revenue - COGS. Operating: Gross - Operating expenses. Net: Operating - Interest & taxes.
Why track profit margins?
To measure business health, compare with competitors, identify trends, and make informed pricing decisions.
