Net Profit Margin for a Consulting Firm with $300K Revenue
Service businesses like consulting firms have low COGS but high labor costs embedded in operating expenses.
How to use this tool
- Enter total revenue, cost of goods sold (cogs), operating expenses (sg&a, r&d) and interest & taxes in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your net profit margin and the full breakdown beneath it.
Consulting and professional services businesses carry minimal cost of goods sold but must manage salary and overhead expenses carefully to maintain healthy profit margins.
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.