Business / Ecommerce
Profit Margin Calculator
Calculate gross and net profit margins from revenue, COGS and operating expenses
Business figures
₹
₹
₹
Rent, salaries, marketing, shipping, platform fees, etc.
Net profit margin
0%
How profit margin is calculated
Gross profit = Revenue − COGS • Gross margin % = Gross profit / Revenue × 100
Net profit = Gross profit − Operating expenses • Net margin % = Net profit / Revenue × 100
Net profit = Gross profit − Operating expenses • Net margin % = Net profit / Revenue × 100
Why use it
Detailed features
Gross & net view
See both product-level and business-level profitability.
Ecommerce ready
Factor in COGS, ads, shipping and platform fees.
Instant margins
Margin percentages update as you type.
On the go
Also in the free Toolance Android app.
Frequently asked questions
Margin shows how much of each rupee of sales is profit. Gross margin uses revenue minus direct cost of goods. Net margin is after all expenses including rent, salary and tax.
Subtract cost of goods sold from revenue, divide by revenue and multiply by 100 for percent. Our calculator does this from the sales and cost figures you enter.
It varies by category. Grocery runs thin; specialty products higher. Compare your margin to last year and to direct competitors, not a single national average.
Markup is profit divided by cost. Margin is profit divided by selling price. A 25% markup is not the same as 25% margin.
For your own P and L, use taxable value excluding GST you collect and remit. For quick shop-level math, stay consistent with how you enter prices.
Yes. If you know target margin and cost, you can back-solve selling price. Try different costs to see break-even sales volume.
No. You enter the numbers. For statutory filings and tax, use proper books and a CA.
Yes. Free for shop owners and startups, no account needed.