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

Download the Free Template

Enter your name and email in the form below and download the free template now!

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.

More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.

0 search results for ‘