Use this free profitability ratios calculator to estimate gross margin, operating margin, net profit margin, return on assets, return on equity, earnings per share, and price-to-earnings ratio.
$120,000 net income / $950,000 net sales
Profitability ratios need context. Different industries can have very different normal margins, asset bases, and capital structures.
Compare several profitability ratios from one set of statements.
See the difference between gross, operating, and net margin.
Estimate return on assets and return on equity.
Connect earnings per share with a simple P/E ratio.
Margins, ROA, ROE, EPS, and P/E
Lower margin ratios
Profitability comparison
Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
Use it for early planning and side-by-side comparisons, especially for tasks like these: Compare several profitability ratios from one set of statements. See the difference between gross, operating, and net margin. Treat the answer as a planning estimate, not a final quote.
Net sales, COGS, operating income, and net income means income statement numbers used to calculate margin ratios. Average assets and average equity means balance sheet averages used to estimate returns on assets and equity. Shares outstanding and price per share means per-share inputs used for EPS and price-to-earnings.
In plain language: The calculator divides gross profit, operating income, and net income by net sales for margins, then compares net income with average assets, average equity, shares, and stock price. If the result seems too high or too low, first check whether each field expects a monthly amount, annual amount, dollar value, or percent.
Read the main answer first, then use the supporting lines to see why the answer moved. For finance calculators, the extra lines often explain interest, tax, fees, principal, payment timing, or totals paid over time. Those pieces matter because two results can look close at first but cost very different amounts later.
This does not adjust for unusual gains or losses, accounting policy, tax items, share dilution, debt risk, industry differences, market expectations, or investment advice. Real finance decisions can also depend on fees, timing, local rules, credit details, and provider-specific terms.
Check the rate, time period, compounding or payment frequency, and whether the value is before tax or after tax. A common mistake is mixing monthly and yearly numbers, which can make a finance answer look believable even when it is off by a lot.
Gross margin looks after product or service cost. Operating margin looks after operating expenses. Net margin looks after all normal income statement layers included in net income. Each one answers a different question.
Be careful. ROE can look high because a company is very profitable, but it can also look high because the company has less equity or more debt. Compare it with debt ratios and industry context.
No. The calculator runs in your browser tab. Recent answers stay only on the page while you use it, and they are not sent to a server.