---
title: "Profit Margin Calculator | NZ Business Alliance"
description: "Work out your gross and net margins on any product or service, and see what a price increase adds to your bottom line."
source: https://alliance.org.nz/tools/profit-margin-calculator/
---

[Free tools](https://alliance.org.nz/tools/)

# Profit Margin Calculator

Work out your gross profit margin on any product or service. Change the numbers to see how price increases or cost reductions affect your monthly profit.

Gross margin = (sell price − cost price) ÷ sell price. 40–60% is typical for product businesses; service businesses often run 60–80%. Pricing is usually the fastest lever a small business has.