Profit Margin Calculator

Calculate your gross profit and margin instantly — plus see how you stack up against Australian SMB benchmarks.

Gross Profit & Margin Calculator

Enter your revenue and cost of goods sold (COGS). We'll calculate your gross profit (AUD) and gross margin percentage.

Your total sales revenue for the period (monthly, quarterly, or annual)
$
Direct costs: materials, labour, contractor costs, production costs — whatever you spend to deliver the product or service
$
Your Gross Profit & Margin
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Gross Profit (AUD)
—
Gross Margin %
—
COGS as % of Revenue

Get AU Profit Margin Benchmarks by Industry

We'll send you gross margin benchmarks across Australian industries — trades, professional services, health, retail, and more — so you can see where your business stands.

✓ You're in — benchmarks on the way.

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What Is Gross Profit Margin?

Gross profit margin is one of the most important indicators of your business's financial health. It shows what percentage of your revenue remains after covering the direct costs of delivering your product or service.

Gross Profit = Revenue − COGS

Gross Margin % = (Gross Profit ÷ Revenue) × 100

COGS (Cost of Goods Sold) includes only direct costs: raw materials, direct labour, manufacturing costs, or contractor costs for service businesses. It does not include operating expenses like rent, salaries of non-production staff, or marketing spend — those are deducted lower in your P&L.

A higher gross margin means more money is available to cover operating costs and generate net profit. For Australian SMBs, keeping a close eye on gross margin is essential — especially as input costs (materials, wages, freight) increase.

How to Calculate Gross Margin

  1. Identify revenue: Use total revenue from sales (excluding GST if registered).
  2. Calculate direct costs: Include materials, direct labour, contractors, and delivery costs.
  3. Apply the formula: Subtract COGS from revenue, divide by revenue, multiply by 100.
  4. Track over time: Monitor monthly to spot trends in pricing or cost pressure.
  5. Compare to benchmarks: Check figures against industry standards below.

What Is a Healthy Gross Margin?

The answer depends on your industry, but use these guidelines:

Remember: gross margin is different from net profit. After operating expenses, typical net margins for Australian SMBs are 5–15%.

How to Improve Gross Margin

AU Gross Margin Benchmarks by Industry

Indicative gross margin benchmarks for Australian small and medium businesses. Actual figures vary by business model, pricing strategy, and scale.

Professional Services
60–75%
Consulting, accounting, legal
Software / SaaS
70–85%
High margin, low COGS
Trades & Construction
25–45%
Materials & labour heavy
Retail / eCommerce
30–50%
Product cost drives COGS
Health & Allied Health
55–70%
Physio, chiro, psychology
Hospitality / Food
25–40%
Food cost typically 28–35%

If your gross margin is below the benchmark for your industry, the first places to look are: pricing (are you charging enough?), supplier costs (can you negotiate better rates?), and production efficiency (are you over-investing time or materials per job?).