Profit Margin Calculator
Calculate gross, operating and net profit margins for your business.
2026 Tax YearData stays on your deviceUpdated Apr 1, 2026
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Net Profit Margin
25.5%
$25,500.00
Gross Margin
60.0%
$60,000.00
Operating Margin
30.0%
$30,000.00
Markup
150.0%
Profit / cost
Tax
$4,500.00
Waterfall
Revenue$100,000.00
- Cost of Goods-$40,000.00
Gross Profit$60,000.00
- Operating Expenses-$30,000.00
Operating Profit$30,000.00
- Tax (15%)-$4,500.00
Net Profit$25,500.00
Frequently Asked Questions
Margin vs markup?
Margin is profit as % of revenue. Markup is profit as % of cost. Example: buy for $60, sell for $100 = 40% margin but 66.7% markup.
What is a good profit margin?
Varies hugely by industry. Retail: 2-5% net. Software: 20-40% net. Services: 15-25% net. Restaurants: 3-9% net.
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Built and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · MethodologyDisclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.
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