Profit Margin Calculator
Calculate gross, operating, and net profit margins from your revenue and cost inputs — with industry benchmark comparisons.
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How this calculator works
There are three levels of profit margin — each tells a different story. Gross margin shows production efficiency. Operating margin shows operational efficiency including staff and overheads. Net margin is the final bottom line after tax. Most businesses know their revenue but not their margins — this is a dangerous blind spot.
Gross margin = (Revenue − COGS) ÷ Revenue | Operating margin = (Revenue − COGS − OpEx) ÷ Revenue | Net margin = Net profit ÷ Revenue
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Track margins, not just revenue
Revenue growth with shrinking margins is a warning sign. A ₹10 crore business at 5% net margin makes less than a ₹2 crore business at 30%.
COGS creep kills margins
Raw material and supplier cost increases of even 2–3% annually compound into serious margin erosion over 3–5 years.
SaaS vs services benchmarks
SaaS: gross margin 70–80%. E-commerce: 30–50%. Agency/services: 40–60%. Manufacturing: 20–40%.
Frequently Asked Questions
Revenue growth with shrinking margins is a warning sign. A ₹10 crore business at 5% net margin makes less than a ₹2 crore business at 30%.
Raw material and supplier cost increases of even 2–3% annually compound into serious margin erosion over 3–5 years.
SaaS: gross margin 70–80%. E-commerce: 30–50%. Agency/services: 40–60%. Manufacturing: 20–40%.