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//// Business · Profitability

Profit Margin Calculator

Enter revenue, direct costs, overhead, and owner draw — see gross, operating, and net margin with a health rating. Sensitivity table shows exactly how +10% revenue or −10% costs move the needle.

Corp Tax Rate21%
SE Threshold$400
FICA Cap 2024$168,600
Input period

Monthly figures

Total client billings

$

Subcontractors, materials, project software

$

Rent, utilities, subscriptions, insurance

$

Your salary or distribution

$
Gross Profit$144K
Revenue − COGS80.0%
Operating Profit$114K
Gross − Overhead63.3%
Net Profit$42K
Operating − Draw23.3%
Healthy20–35% net margin

Solid margins. You have buffer for reinvestment, slow periods, and taxes. Industry benchmark for freelance services.

Net margin breakdown23.3%
Direct Costs
$36K
Overhead
$30K
Owner Draw
$72K
Net Profit
$42K

Sensitivity analysis — what if?

ScenarioChangeNet ProfitNet MarginΔ Profit
+10% Revenue$18K$60K30.3%+$18K
−10% COGS$-4K$46K25.3%+$4K
−10% Overhead$-3K$45K25.0%+$3K