Profit margin calculator for your shop
Three numbers from last month. See your gross margin, your net margin, and how much you must sell just to break even.
Your month, in three numbers
Nothing leaves your phone. The maths runs in this page.
How the margins are worked out
Gross margin is sales minus the cost of the goods you sold, as a share of sales. It shows how much each sale leaves to pay for everything else.
Net margin takes away rent, staff and the other running costs too. It is what you actually keep. Break-even sales is the amount you must sell in a month just to cover all costs: your running costs divided by your gross margin.
Margins differ by trade. A kirana store lives on thin gross margins and high volume; a service business has almost no cost of goods but higher staff costs. Compare your own months with each other before comparing with anyone else.
Questions people ask
What is the difference between gross margin and net margin?
Gross margin only takes away the cost of the goods. Net margin also takes away rent, staff, electricity and other running costs. Net margin is what you keep.
How do I work out break-even sales?
Divide your monthly running costs by your gross margin. If running costs are ₹25,000 and gross margin is 33%, you need about ₹75,000 of sales to break even.
My net margin is negative. What does that mean?
Your running costs are higher than what your sales leave after the cost of goods. Either sales must rise, the buying price must fall, or a running cost must go.
Does this send my numbers anywhere?
No. The calculator runs in your browser. The ScoreMyBiz app does the same maths every day from your own book, privately in your account.
Not financial advice · Check with a CA for decisions about tax or loans.