Gross margin
Gross profit divided by revenue. It reflects the relationship between selling price and direct cost of sales.
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Business calculator
Profit Margin Calculator
Calculate gross margin, net margin, and profit percentage.
Last reviewed 2026-09-26
Enter your numbers
Use your own business figures.
Total sales for the period.
Direct product, material, or service-delivery costs.
Other costs of running the business during the period.
Results
What the numbers show.
- Gross profit
- NGN 0.00
- Gross margin
- 0.0%
- Net profit
- NGN 0.00
- Net margin
- 0.0%
Revenue minus direct cost of sales.
Gross profit as a percentage of revenue.
Gross profit minus operating expenses.
Net profit as a percentage of revenue.
This is a planning calculation, not accounting, tax, legal, or financial advice. Use accurate current inputs and review the result against your real business records.
What it does
Make the calculation clear.
Enter revenue, direct cost of sales, and operating expenses to calculate gross profit, gross margin, net profit, and net margin for the same period.
Why it is useful
It makes it easier to compare profitability over time, review pricing, and spot pressure from rising costs.
Use the result well
The calculation is a starting point, not the whole decision.
Use accurate inputs, understand what the result means, and compare the estimate with what your business actually records.
How to use it
- 1Use revenue, direct cost of sales, and operating expenses from the same period.
- 2Check gross margin first to understand how much revenue remains after direct delivery costs.
- 3Check net margin after operating expenses to understand what the business keeps overall.
- 4Compare the same margin definition over several periods instead of reacting to one unusually strong or weak month.
Worked example
If revenue is NGN 800,000, direct cost of sales is NGN 440,000, and operating expenses are NGN 240,000, gross profit is NGN 360,000 and gross margin is 45%. Net profit is NGN 120,000 and net margin is 15%.
Net margin
Net profit divided by revenue after operating expenses. It gives a broader view of profitability.
Negative margin
A negative result means the relevant costs entered are greater than revenue for the period. Review the underlying records before changing prices automatically.
Calculate → act → understand
Use your real records to understand the business.
Use the calculation as a planning view, then compare it with recorded income, payments, expenses, and other operating records in Business Health.
View Business HealthFAQ
Questions about this calculator
A few quick answers about the calculator and how to interpret the result.
Which margins does the calculator show?
It calculates gross margin and net margin, together with the profit amounts behind them.
Is this calculator free?
Yes. The calculator is free to use.
Will I need to create an account?
No. You can use the calculator without creating an account.
Will it work on mobile?
Yes. The calculator is designed to work on phones, tablets, and desktop devices.