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BUSINESS / PROFIT CLARITY

Profit Margin Calculator

Separate direct costs from operating expenses to see gross profit, operating profit, and the margin left from every revenue rupee.

  • 01 Calculated in this tab
  • 02 Values stay in this browser tab
  • 03 Use boundary

Conversion input

Known value

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Calculation path

The page first subtracts direct costs to show gross profit, then subtracts operating expenses and adds other operating income. Both profit figures are divided by revenue to show their margins.

Calculation path

Gross profit = revenue - cost of goods. Operating profit = gross profit - operating expenses + other income. Each margin divides its profit by revenue.

What you provide

What you provide

  • Revenue for one clearly defined period
  • Direct cost of producing or delivering that revenue
  • Operating expenses and any other operating income for the same period

What you receive

What you receive

  • Gross profit and gross margin
  • Operating profit or loss
  • Operating margin for pricing and cost decisions

Use boundary

Choose the maximum decimal places shown. This does not increase source accuracy.

Use values from the same accounting period and the same tax basis. Finance costs, depreciation, exceptional items, and income tax are not separately modelled.