Profit Margin Calculator (USA)

Use our Profit Margin Calculator to quickly determine your gross profit, net profit, and profit margin percentages based on cost and revenue. Ideal for businesses, freelancers, and pricing strategies!

Business Financials
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Rent, salaries, utilities, etc.
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Interest, taxes, etc.
US Business Considerations
Advanced Options

Understanding Profit Margins in the US

Gross Profit: Revenue - Cost of Goods Sold (COGS)

Gross Profit Margin: (Gross Profit / Revenue) × 100

Net Profit: Gross Profit - Operating Expenses - Other Expenses - Taxes

Net Profit Margin: (Net Profit / Revenue) × 100

Markup Percentage: (Gross Profit / COGS) × 100

After Sales Tax Revenue: Revenue / (1 + (Sales Tax Rate/100))

Manufacturing: Gross 30-40%, Net 8-12%

Retail: Gross 25-35%, Net 2-5%

Wholesale: Gross 20-30%, Net 3-8%

Professional Services: Gross 50-70%, Net 10-20%

E-commerce: Gross 30-50%, Net 5-15%

Restaurants: Gross 60-70%, Net 3-5%

Software: Gross 80-90%, Net 15-25%

Consulting: Gross 70-85%, Net 15-30%

Sales Tax: Varies by state (0-10.25%). Not all states have sales tax.

Income Tax: Federal rates from 10% to 37%. State taxes vary (0-13.3%).

Payroll Taxes: 15.3% (split between employer and employee)

Self-Employment Tax: 15.3% for sole proprietors/partners

Corporate Tax: Flat 21% federal rate + state taxes

Pass-Through Deduction: Up to 20% of qualified business income

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Margin Examples
Business Revenue Net Margin
Retail Store $50,000 3-5%
Manufacturer $200,000 8-12%
Consultant $150,000 20-30%
Restaurant $300,000 3-5%
E-commerce $100,000 5-15%
Margins vary based on business size, location, and efficiency.
Improving Margins
  • 1. Negotiate better prices with suppliers
  • 2. Optimize inventory management
  • 3. Review pricing strategy regularly
  • 4. Take advantage of tax deductions
  • 5. Automate processes to reduce labor costs
  • 6. Consider pass-through entity structure
  • 7. Monitor and reduce overhead costs
Tax Efficiency Tips
  • 1. Maximize business deductions
  • 2. Consider S-Corp election if profitable
  • 3. Contribute to retirement plans
  • 4. Use Section 179 expensing
  • 5. Track all business expenses
  • 6. Consider home office deduction
  • 7. Hire family members when appropriate