Calculator

Income Statement & Margin Calculator

Turn revenue and expenses into net income, then into gross, operating, and net margin — the same figures at every stage of the income statement.

← Read the The Income Statement concept page

Revenue

Cost of goods sold

Operating expenses (rent, wages, marketing)

Other expenses (interest, taxes)

Net income

$4,000.00

Gross margin

70.0%

Operating margin

20.0%

Net margin

20.0%

How the math works

Revenue:                    $20,000.00
− Cost of goods sold:        $6,000.00
= Gross profit:              $14,000.00   (70.0% margin)

− Operating expenses:        $10,000.00
= Operating income:          $4,000.00   (20.0% margin)

− Other expenses:            $0.00
= Net income:                $4,000.00   (20.0% margin)

Each margin divides the profit figure at that stage by revenue, which is what makes it possible to compare this business's efficiency to one of a completely different size.