Profit Margin Template

Profit Margin Template

This profit margin template will allow you to calculate the gross profit, EBITDA, and net profit margins.

Below is a preview of the profit margin template:

Profit Margin Template Screenshot


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Profit margin is a measure of a company’s earnings (or profits) relative to its revenue. The two main types of profit margins are gross profit margin (gross profit divided by revenue) and net profit margin (net income divided by revenue).


Profit Margin Formula

When assessing the profitability of a company, there are two main profit margin ratios to consider – gross and net. Below is a breakdown of each formula.

Gross Profit Margin = Gross Profit / Revenue x 100

Net Profit Margin = Net Income / Revenue x 100


What is a Good Profit Margin?

You may be asking yourself, “what is a good profit margin?” A good margin will vary by industry, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low. Of course, these guidelines can vary widely by industry, company size, and a variety of other factors.


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Analyst Certification FMVA® Program

Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.


Financial Analyst certification curriculum


A well rounded financial analyst possesses all of the above skills!


Additional Questions & Answers

CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

In order to become a great financial analyst, here are some more questions and answers for you to discover:


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