Calculate gross, operating, and net profit margins for any business or product line.
Gross margin = (Revenue − COGS) / Revenue. Measures production efficiency. Operating margin includes operating expenses and shows how efficiently the business is run. Net margin is the final bottom line after all costs including taxes and interest.
Margins vary widely by industry. Software companies often achieve 60–80% gross margins. Restaurants typically see 3–9% net margins. Retail averages 2–5% net. A "good" margin is one that's improving over time and competitive within your industry.