It depends on the sector. Professional services typically achieve 20–40% net margins; retail 3–8%; construction 5–10%. A net margin above 10% is generally considered healthy for most SMEs.
Business FinanceGross & Net MarginLast reviewed:
Profit Margin Calculator Ireland 2026
Calculate gross profit margin, net profit margin, and markup for your Irish business. Enter revenue and costs to see profitability at a glance.
✓ Gross margin: Revenue minus cost of goods sold✓ Net margin: Revenue minus all operating costs✓ Markup percentage for pricing decisions
💹 Business Finance🧮 Standard formula
Gross margin formula(Revenue − COGS) ÷ Revenue
Net margin formula(Revenue − All costs) ÷ Revenue
Markup formulaGross Profit ÷ COGS
Irish avg net marginVaries by sector (5–25%)
Start Calculator →Gross margin
Excludes operating expenses — shows product profitability
Net margin
Includes all costs — shows overall business health
Markup
Different to margin — calculated on cost, not revenue
Pre-tax
Margins here are pre-corporation/income tax
Calculate Profit Margins
Your Results
Gross Profit—
Gross Margin %—
Markup %—
Net Profit—
Net Margin %—
Total Cost Ratio—
Confidence Score
Frequently Asked Questions
Margin is calculated on selling price (Profit ÷ Revenue). Markup is calculated on cost (Profit ÷ Cost). A 50% markup on €100 cost = €150 price = 33% margin.
Always use VAT-exclusive revenue when calculating profit margins. VAT collected is passed to Revenue — it is not your income.
COGS (Cost of Goods Sold) includes direct costs that vary with output: materials, subcontractors, direct labour. Operating expenses are fixed overheads: rent, admin salaries, marketing, insurance.
For companies, corporation tax (12.5%) applies to net profit. For sole traders, income tax applies to net profit. A higher margin means more taxable income — and a higher absolute tax bill.
Official Sources
This calculator is based on legislation and guidance from the following official sources:
Need an exact calculation?
IrishTaxTools provides estimates. D’Emilia Accounting can review your complete circumstances and provide professional assistance with Irish tax, payroll, VAT, bookkeeping and compliance.