Profit Margin Calculator by Industry Europe 2026
This profit margin calculator gives you the four key margins — gross, operating (EBIT), EBITDA and net — and compares them to real European industry benchmarks for 2026. Enter revenue, COGS, operating expenses, interest and tax rate; pick your industry (Restaurant, SaaS, Consulting, Retail, Construction, Healthcare, Manufacturing, Real Estate, E-commerce). Example: a EUR 1M revenue restaurant with EUR 320,000 COGS and EUR 580,000 operating expenses has a gross margin of 68% (in line with the 65–70% benchmark) and a net margin of 6% (above the 3–5% industry average). The tool labels each margin as Below / At / Above industry average with a clear traffic-light visual. Last updated June 2026.
How to use this calculator
- 01Toggle monthly or annual figures.
- 02Enter revenue and cost of goods sold (COGS).
- 03Enter operating expenses, interest and tax rate.
- 04Choose your industry to compare against benchmarks.
- 05Read the waterfall chart and the traffic-light verdict.
- •Restaurants: gross 65–70%, net 3–5% (thin margins, high volume).
- •SaaS: gross 70–85%, net 10–20% (scale beats most industries).
- •Consulting: gross 50–70%, net 15–25% (people-driven).
- •Retail: gross 30–50%, net 2–8% (inventory + rent pressure).
- •EBITDA is the cleanest cross-industry profitability metric.
Frequently asked questions
What is a good profit margin in Europe?
It depends on industry. SaaS aims for 15–20% net; restaurants are healthy at 4–6%; consulting at 15–25%. Compare to your industry benchmark, not to other sectors.
Gross vs net margin — which matters most?
Gross margin shows product/pricing power. Net margin shows the whole business including overhead and tax. Investors look at gross first, owners care about net.
What is EBITDA and why do investors prefer it?
Earnings Before Interest, Taxes, Depreciation, Amortisation. It strips out financing and accounting choices, so two companies can be compared on operational performance alone.
How can I improve my margin?
1) Raise prices (often easiest); 2) reduce COGS through supplier renegotiation; 3) cut non-essential operating expenses; 4) increase volume to dilute fixed costs.
Does VAT count as revenue?
No — revenue is reported net of VAT. The VAT you collect is a liability owed to the tax authority, not part of your margin.
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