π΅ Profit Calculator
Calculate gross profit, net profit, and profit margin from revenue and cost inputs.
Gross Profit vs Operating Profit vs Net Profit
These three profit levels appear on every income statement. Gross profit = Revenue β COGS. Operating profit (EBIT) = Gross Profit β Operating Expenses. Net profit = EBIT β Interest β Taxes. Each level reveals different business health: gross margin shows pricing power, operating margin shows operational efficiency, net margin shows total bottom-line profitability.
People Also Ask
Benchmarks vary by industry. Technology/SaaS: 15β30%+. Financial services: 20β30%. Healthcare: 5β15%. Retail: 2β5%. Restaurants: 3β5%. Manufacturing: 5β10%. Net margin above your industry average indicates a competitive advantage. Amazon's retail operations famously run on ~1β3% net margins.
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization. It's used as a proxy for operating cash flow and is the most common basis for business valuation multiples (EV/EBITDA). Adding back depreciation and amortization removes the effect of non-cash accounting charges, making it easier to compare businesses with different capital structures.