Profit Calculator
Calculate gross and net profit from revenue, cost of goods, and operating expenses — with margins, so you see the full picture.
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How to Use This Calculator
Enter total revenue for the period.
Add cost of goods sold (COGS) and operating expenses.
We compute gross profit, net profit, and both margins.
Adjust inputs to model pricing or cost changes.
Frequently Asked Questions
What is the difference between gross and net profit?
Gross profit is revenue minus the direct cost of goods sold. Net profit subtracts all operating expenses too — it’s what actually reaches the bottom line.
How do you calculate net profit?
Net profit = revenue − COGS − operating expenses. Net margin is net profit ÷ revenue, expressed as a percentage.
What’s a good net profit margin?
It varies widely by industry — software can exceed 20%, while retail often runs in the low single digits. Compare to peers in your sector, not a universal number.
What counts as COGS vs operating expenses?
COGS is the direct cost of producing what you sell (materials, production labor, hosting for SaaS). Operating expenses are running-the-business costs — salaries, rent, marketing, software.
How can I increase net profit?
Raise prices, lower COGS (better margins), or cut operating expenses — and grow revenue without growing costs at the same rate. Small margin gains compound quickly at scale.
Why Use This Calculator
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Get gross and net profit in one view
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See both gross and net margins
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Separate COGS from operating expenses
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Understand where your money goes
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