Business & Life
Enter revenue, cost of goods sold, and operating expenses to calculate gross profit, operating profit, and operating margin.
How to read these results
These values are calculated from your current inputs. Check the input units and this calculator’s stated assumptions or included scope alongside the results.
Primary result: Operating profit
Supporting value: Operating margin
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This simplified operating analysis excludes interest, taxes, and non-operating gains or losses.
The calculator subtracts cost of goods sold from revenue to get gross profit, then subtracts operating expenses to get operating profit. Operating profit divided by revenue gives operating margin.
Use the same reporting period and accounting scope for every input. Missing operating costs such as payroll, rent, or depreciation can overstate profitability.