Compute gross, operating, and net margin from a one-page income statement. Standard profitability metrics for any business.
Net sales — total invoiced amount minus returns and discounts.
Raw materials, direct labour, freight-in. Costs that go directly into producing goods sold.
Salaries, rent, utilities, marketing, depreciation.
Non-operating income: interest earned, asset sale gains, etc.
Loan interest paid during the period.
Income tax paid for the period.
Net margin
15%
Net profit of ₹15.00 L on ₹1.00 Cr revenue.
| Line item | Amount | % of revenue |
|---|---|---|
| Revenue | ₹1.00 Cr | 100.00% |
| − Cost of Goods Sold (COGS) | (₹60.00 L) | 60.00% |
| Gross profit | ₹40.00 L | 40% |
| − Operating expenses (OpEx) | (₹20.00 L) | 20.00% |
| Operating profit (EBIT) | ₹20.00 L | 20% |
| + Other income | ₹1.00 L | 1.00% |
| − Interest expense | (₹2.00 L) | 2.00% |
| − Tax | (₹4.00 L) | 4.00% |
| Net profit | ₹15.00 L | 15% |
Compare calculations across closely related financial tools in this category.
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