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
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.

Understand the result

What the Profit Margin Calculator tells you

This calculator helps you separate revenue, cost, profit and margin for a product or service. It turns a small set of inputs into a clear profit margin, then shows the supporting breakdown so you can understand what moved the answer.

Inputs to check

  • Selling price: use a recent statement, quote or realistic assumption.
  • Total cost: use a recent statement, quote or realistic assumption.
  • Units or revenue: use a recent statement, quote or realistic assumption.

Try three scenarios

Run a likely case, a conservative case and a better case. Change one input at a time so you can see which assumption matters most.

How to use this estimate in a real decision

Write down the values you entered and the date you checked them. Compare options using the same assumptions, then include any fee, tax, penalty or provider rule that sits outside the calculator. A mathematically precise answer can still be incomplete when the inputs are old or optimistic.

Treat the result as a planning range, not a quote, approval or guaranteed outcome. Recalculate whenever your rate, price, income, goal date or business cost changes.

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.