FinanceFormula-based · Runs in your browser

Profitability Ratios Calculator

Calculate gross, operating, and net margins plus return on assets, equity, and capital employed.

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Inputs

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Result

Updates as valid inputs change.

Calculated locally
Financial ratios depend on accounting definitions and should be evaluated in context.
Gross profit margin
Operating margin
Net profit margin
Return on assets
Return on equity
Return on capital employed
Gross profit

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Calculation steps

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  1. 1

    Formula selected

    The calculator uses the following formula or method.

    margin = profit ÷ revenue; ROA = net income ÷ average assets; ROE = net income ÷ average equity

  2. 2

    Values entered

    Your values are placed into the calculation.

    Enter values to see what is used in this step.

  3. 3

    Result calculated

    The formula or method produces the following result values.

    Results will appear after a successful calculation.

  4. 4

    Answer formatted

    Displayed values are rounded and formatted using each output’s configured precision.

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What this calculator does

Calculate gross, operating, and net margins plus return on assets, equity, and capital employed.

How it works

The calculator evaluates margin = profit ÷ revenue; ROA = net income ÷ average assets; ROE = net income ÷ average equity. Inputs are checked before calculation, and invalid values such as zero denominators or out-of-range selections produce a clear error instead of a misleading result.

Input query strings and outputs

Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.

Input query strings

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  • ?revenue= Revenue / net sales

    Money · Required · Default: 1,000,000

  • ?costOfGoodsSold= Cost of goods sold

    Money · Required · Default: 600,000

  • ?operatingIncome= Operating income (EBIT)

    Money · Required · Default: 150,000

  • ?netIncome= Net income

    Money · Required · Default: 100,000

  • ?averageAssets= Average total assets

    Money · Required · Default: 800,000

  • ?averageEquity= Average shareholders’ equity

    Money · Required · Default: 400,000

  • ?currentLiabilities= Current liabilities

    Money · Required · Default: 150,000

Outputs

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  • grossMargin Gross profit margin

    Percentage · Primary output

  • operatingMargin Operating margin

    Percentage

  • netProfitMargin Net profit margin

    Percentage

  • returnOnAssets Return on assets

    Percentage

  • returnOnEquity Return on equity

    Percentage

  • returnOnCapitalEmployed Return on capital employed

    Percentage

  • grossProfit Gross profit

    Currency

Inputs and results

The inputs are Revenue / net sales, Cost of goods sold, Operating income (EBIT), Net income, Average total assets, Average shareholders’ equity, Current liabilities. Results include Gross profit margin, Operating margin, Net profit margin, Return on assets, Return on equity, Return on capital employed, Gross profit.

Important notes

Financial ratios depend on accounting definitions and should be evaluated in context.

Sources
  • No external reference is listed for this calculator. Its formula and variable definitions are shown above.
Limitations
  • Financial ratios depend on accounting definitions and should be evaluated in context.
  • Estimates use the rates, timing, and assumptions entered. Fees, taxes, lender rules, and future changes are included only where explicitly shown.