AbraCalc

Net Profit Margin at Breakeven — Zero Profit

When total costs equal revenue the net profit margin is exactly 0% — this preset illustrates a breakeven scenario.

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How to use this tool

  1. Enter total revenue, cost of goods sold (cogs), operating expenses (sg&a, r&d) and interest & taxes in the fields above.
  2. Results update instantly as you type — or click Calculate.
  3. Read your net profit margin and the full breakdown beneath it.

A breakeven scenario occurs when revenue exactly covers all costs, yielding a net profit margin of 0% — useful as a baseline when planning pricing or cost-cutting targets.

Frequently asked questions

What is the difference between gross and net profit margin?
Gross margin only subtracts COGS. Net margin subtracts everything: COGS, operating expenses (salaries, rent, marketing), interest, and taxes. A company can have a healthy gross margin but a thin or negative net margin due to high overhead.
What is a good net profit margin?
Net margin benchmarks: Software/SaaS 10–25%+; Retail 2–5%; Restaurants 3–9%; Manufacturing 5–10%. Net margin below 0% means the business is unprofitable at the bottom line.