Profit Margin Analysis

What are you really keeping?

Enter revenue and each cost bucket. See gross, operating, and net margins — and where profit leaks through the P&L.

22.0%

net margin

$22,000 kept

P&L inputs

Margins

Gross profit

$60,000

Gross margin

60.0%

Operating

$30,000

Op. margin

30.0%

Net profit

$22,000

Net margin

22.0%

Freedom Coach™

Net margin: 22.0% · $22,000 keeps.

Gross 60% → Operating 30% → Net 22%. Each layer shows where money leaks.

  • Gross margin looks healthy.
  • Net margin is solid for a growing business.
  • Benchmark against your industry: SaaS aims 70%+ gross, retail 30–50%, services 40–60%.

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Frequently asked questions

What's a good profit margin?

Depends on industry. SaaS aims 70%+ gross / 20%+ net. Retail: 30–50% gross / 2–10% net. Restaurants: 60–70% gross / 3–6% net. Services: 40–60% gross / 10–20% net.

Gross vs operating vs net margin?

Gross = revenue − COGS (production efficiency). Operating = gross − operating expenses (business efficiency). Net = operating − taxes/interest (what you actually keep).

How do I improve margin fast?

Raise prices first (biggest lever). Then eliminate low-margin SKUs. Then negotiate suppliers. Cost cutting is slower and shows up quarters later.

Should I compare monthly or annually?

Both. Monthly catches seasonality and cost drift. Annual smooths noise for benchmarking against your industry.

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