What is cost of goods or services?

Direct costs to deliver what you sell: materials, subcontractors, direct labor, shipping. Don’t include overhead like rent or admin unless you allocate it per project.

Why is my margin in the red?

Either prices are too low or costs are too high. Look at raising rates, cutting direct costs, or focusing on higher-margin work.

Profit Margin Calculator

Enter revenue and cost of goods or services to get gross profit and gross margin percentage. The health bar shows whether your margin is in the red (<10%), yellow (10–20%), or green (>20%).

Revenue ($)

Cost of goods / services ($)

How it works

Gross profit is revenue minus cost of goods (or services). Gross margin percentage is (gross profit ÷ revenue) × 100. It’s one of the main measures of profitability.

A margin below 10% is often considered risky; 10–20% is okay; above 20% is typically healthy. Use the bar as a quick check and adjust pricing or costs accordingly.

Profit Margin Calculator

How it works

Frequently asked questions

Stop estimating. Start invoicing.

Profit Margin Calculator

How it works

Frequently asked questions

Stop estimating. Start invoicing.