Instantly find your gross, operating, and net profit margins
Inputs
Results
Income Statement Breakdown
Summary Table
| Line Item | Amount | % of Revenue |
|---|---|---|
| Revenue | $150,000.00 | 100.00% |
| − Cost of Goods Sold | -$60,000.00 | -40.00% |
| Gross Profit | $90,000.00 | 60.00% |
| − Operating Expenses | -$30,000.00 | -20.00% |
| Operating Profit (EBIT) | $60,000.00 | 40.00% |
| − Income Tax (25.00%) | -$15,000.00 | -10.00% |
| Net Profit | $45,000.00 | 30.00% |
Profitability Snapshot
Use this free profit calculator to instantly compute gross profit, operating profit (EBIT), and net profit from your revenue, cost of goods sold, operating expenses, and tax rate. See each margin as a percentage of revenue, find your break-even point, and get a full income-statement breakdown — no spreadsheet needed.
Gross profit is revenue minus the direct cost of goods sold (COGS). Net profit goes further by also subtracting operating expenses (rent, salaries, marketing) and income tax, giving you the true bottom-line earnings after all costs.
Profit margin is profit divided by revenue, expressed as a percentage. For example, a net profit of $20,000 on $100,000 revenue gives a 20% net margin. Higher margins mean more of each dollar of sales is kept as profit.
It depends on the industry. Retail businesses typically target 20–40%, software companies often exceed 70%, and manufacturers may operate at 10–30%. Use your margin as a benchmark against industry peers rather than a fixed universal target.
Break-even revenue is the minimum sales amount needed to cover all costs (COGS plus operating expenses) without making a profit or a loss. This calculator shows it as COGS + Operating Expenses, assuming those costs are fixed.