Gross Margin & Income Calculator
Calculate gross margin, EBIT, and net income from revenue, COGS, and operating expenses. Includes industry benchmarks and a complete income statement.
Business Financials
Total sales before any deductions
Direct costs to produce goods/services
Rent, salaries, marketing, SG&A
Income Statement
Industry Gross Margin Benchmarks
Gross Margin by Industry
| Industry | Gross Margin | Net Margin | Key Cost Driver |
|---|---|---|---|
| SaaS / Software | 65-80% | 15-30% | Hosting, support |
| Digital Services | 60-75% | 10-20% | Labor |
| Healthcare Services | 45-65% | 5-15% | Labor, equipment |
| E-commerce | 30-50% | 2-5% | Fulfillment, returns |
| Manufacturing | 25-40% | 5-12% | Materials, labor |
| Grocery / Supermarket | 25-30% | 1-3% | COGS, shrink |
Understanding Business Profitability Metrics
Understanding the layers of business profitability - gross margin, operating margin, and net margin - gives you a complete picture of where a business makes and loses money. Each layer strips away different costs to reveal a different aspect of performance.
Gross margin focuses purely on product/service economics - can you produce your core offering profitably? A company with a 20% gross margin has limited headroom for overhead costs. One with 70% gross margin can invest heavily in sales and R&D while still generating strong net profit.