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Profit Margin Calculator

See your gross and net profit margins. Understand how much of each rupee you keep.

Rs
Rs

Direct costs of delivery

Rs

Rent, salaries, marketing

Gross margin vs net margin

Gross margin looks at the gap between what you charge and what it costs you to deliver the work. If you bill Rs 100 and it costs you Rs 60 in direct costs (materials, subcontractors, travel), your gross margin is 40%. It tells you how efficiently you deliver your service.

Net margin goes further. It subtracts your operating costs: rent, salaries, marketing, software, accounting. If after all those expenses you keep Rs 20 out of every Rs 100 earned, your net margin is 20%. This is the number that actually matters for your bank account.

Service businesses in Mauritius typically aim for 15-30% net margin. If your net margin is below 10%, you are either pricing too low or your overheads are too high. This calculator shows both margins side by side so you can see where the money goes.

Frequently Asked Questions

What is profit margin?+
Profit margin is the percentage of revenue that becomes profit. A 20% net margin means you keep Rs 0.20 for every Rs 1 of revenue after all costs.
What is the difference between gross and net margin?+
Gross margin is revenue minus cost of goods sold (COGS). Net margin is revenue minus all costs including operating expenses, taxes, and interest. Net margin is always lower than gross margin.
What is a good profit margin in Mauritius?+
This varies by industry. Service businesses typically target 15-30% net margin. Consultancies and agencies can aim higher. Product-based businesses often have lower margins (5-15%).