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Profit Margin Calculator
Gross, operating, and net profit margin.
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Frequently asked questions
Gross vs Net margin — which matters more?
Gross shows pricing power vs direct costs. Net shows what actually reaches shareholders. Investors watch both; net is ultimate.
What's a "good" net margin?
Industry-dependent. SaaS 20-40%, retail 2-6%, airlines 3-7%. Higher = more pricing power or cost efficiency.
Why do some unicorns have negative margins?
Growth-at-all-costs strategy. Trade profit for market share. Only works if unit economics eventually flip positive.
Margin expansion vs margin compression?
Expansion = margins rising (good). Compression = margins falling due to cost inflation or pricing pressure (bad).