Find your gross and net profit margin from revenue, cost of goods sold, and other expenses.
Gross margin: (Revenue − COGS) ÷ Revenue × 100
Net margin: (Gross profit − Other expenses) ÷ Revenue × 100
What's considered a good profit margin?
It varies enormously by industry — software and services businesses often have net margins above 20%, while retail and grocery businesses often run on margins of just a few percent. Compare against others in the same industry rather than a single universal benchmark.