Free restaurant tool

Restaurant Profit Margin Calculator

Enter revenue, food cost, labour and other expenses to see gross and net margin for a period.

Net profit margin

25%

Net profit is after food, labour and the other costs you entered — not after tax.

Gross profit
₹4,20,000
Gross margin
70%
Net profit
₹1,50,000
Revenue
₹6,00,000

Gross margin is after food cost only. Net margin here is after food, labour and the other costs you entered — still before tax unless you included tax in other costs.

Sales are not profit

A busy Saturday can still lose money if food, labour and rent consume the bill. Margin views keep that distinction visible.

These calculators use standard restaurant maths for education. They are not accounting, tax or legal advice — confirm important decisions with your accountant or adviser.

Frequently asked questions

What is restaurant gross margin?

Gross profit = revenue − food cost (COGS). Gross margin % = gross profit ÷ revenue × 100.

What is net margin in this calculator?

Net profit = revenue − food − labour − other costs you enter. Net margin % = net profit ÷ revenue × 100.

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