Profit Margin Calculator
Analyze your business profitability with detailed margin breakdowns
Business Financials
Total sales or income from operations
Direct costs: materials, labor, manufacturing
Rent, salaries, marketing, utilities
Interest, taxes, one-time costs
📚 Understanding Profit Margins
Profit margins measure how much of every rupee earned becomes profit. They're essential for understanding business health and making strategic decisions.
Types of Margins:
- Gross Margin: Profit after direct costs (COGS). Shows production efficiency.
- Operating Margin: Profit after operating expenses. Reflects operational efficiency.
- Net Margin: Final profit after all expenses. The bottom line profitability.
- Markup: How much you add to COGS to set your price.
Why it matters:
- Compare performance across time periods
- Benchmark against industry standards
- Identify cost reduction opportunities
- Make informed pricing decisions
- Attract investors with strong margins
Gross Margin
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Operating Margin
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Net Margin
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Markup
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Financial Breakdown
Detailed financial breakdown will appear here
📊 Visual breakdown of revenue, costs, and profit margins
💡 Detailed insights and recommendations will appear after calculation